U.S.-based private equity firm Stonepeak will acquire New Zealand's Arvida Group for NZD 1.24 billion (approximately USD 745.74 million), excluding debt. Stonepeak aims to capitalize on the growing demand for retirement and elderly care services through this investment.
Stonepeak, which manages approximately USD 71.2 billion in assets, announced a bid of NZD 1.70 per share on Sunday evening, a 65% premium over Arvida's closing price last Friday.
In a statement, Stonepeak said: "New Zealand’s demand for high-quality retirement living has demonstrated strong resilience across cycles and has shown attractive growth in recent years."
Arvida's stock price surged 57.3% to NZD 1.62, reaching its highest level in over two years and marking its largest single-day gain.
Arvida's stock reached its highest level since June 3, 2022.
The New Zealand company said on Monday that it had accepted the offer, which is not subject to any financing or due diligence conditions.
Last December, Arvida disclosed that it had received an acquisition proposal in September but did not provide further details about the timing of the offer.
On September 22, the company's stock price hit a monthly high of NZD 1.26 but subsequently fell 18.5%, closing at NZD 1.03 last Friday.
In December last year, Arvida rejected a NZD 1.70 per share acquisition proposal from an offshore infrastructure fund, citing excessive conditions that were not in the best interests of shareholders.
