ARV - Arvida Group

[Shareguy]

This makes absolutely no sense, and it makes me wonder what is going on with this company. They sold their Timaru village to Presbyterian Support recently, and now they are cutting hours for on the ground staff.

This resident summed it up:

""We recognise there are financial challenges. We do not believe the solution to this problem lies in cutting the numbers of staff, who are the lowest paid and most vital to resident well-being."

I don't hold, but I smell a rat.

Yes not good reading.

[Untamed]

Yes not good reading.

RV providers have always understood that in order to attract customers, they must provide quality, excellent service, and meet the needs of those customers. Without those customers, they have no business. The moment they lose sight of that fact, they have hammered the first nail into their coffin.

[winner (n)]

That Village at the Park is a joint venture between Arvida and Wellington Tenths Trust ...and branded as Arvida

The Trust original owners of the land that was once Athletic Park

[Untamed]

That Village at the Park is a joint venture between Arvida and Wellington Tenths Trust ...and branded as Arvida

The Trust original owners of the land that was once Athletic Park

What exactly does that mean? The Trust is a major shareholder? Either way, it is the Arvida name in the news today, and it will be the Arvida brand in general that reaps what they are sowing here.

The fact that there are residents sitting out on that picket line, speaks volumes. Arvida has, in one fell swoop, seriously damaged their relationship with residents, and if they go ahead with these staff cuts, they will lose their trust. That is something they will never get back. Believe me.

RN, caregiver and activities roles are the resident facing roles, that Arvida sold these residents on when they moved in. They are the backbone of the business. They are a major part of the reason people move into RVs. They are the last place you should be cutting staff.

Arvida is lucky I'm not a shareholder.

[Breezy]

All the big providers are cutting staff currently from nurses to maintenance staff and everything in between. One large provider is now using gardening staff to do all the maintenance as an example.

[Untamed]

All the big providers are cutting staff currently from nurses to maintenance staff.

I am sure there will be areas where they could make cuts, but it sure as heck should not be the front facing roles that provide the actual "care and support" and the security and peace of mind residents moved in for. Cut the damned management teams, or centralise the back office staff to cover all facilities from one central location. But if RVs choose to mess with the people who residents see as "family" they do so at their own peril.

[Greekwatchdog]

As a shareholder and its significant I am bitterly disappointed in this. Why the front line? Its makes no sense considering there is a nurse shortage.

They better not complain again of a nurse shortage after this.

If any area needs to be cut its the clowns making the decisions. After all they are the ones who failed to offer shareholders the $1.70 offer.

Be an interesting ASM. Might have to practice my darts.

[Mos]

Well said GWD. As a shareholder I agree. Not a good look. Can't see this helping Arvida sales effort.

[Untamed]

As a shareholder and its significant I am bitterly disappointed in this. Why the front line? Its makes sense considering there is a nurse shortage.

They better not complain again of a nurse shortage after this.

If any area needs to be cut its the clowns making the decisions. After all they are the ones who failed to offer shareholders the $1.70 offer.

Be an interesting ASM. Might have to practice my darts.

You own part of this business! So call them, email them, write them an old fashioned "offical" letter. Tell them how you feel! I would encourage all shareholders to do the same. Aside from the ethical, concern for residents perspective, any decision they make that has the potential to negatively impact on their reputation, and potential future sales, impacts on shareholders.

Good to know I'm not the only one having a somewhat emotional reaction to this announcement. If OCA ever do this, I will rip them to shreds! Yes, really 

[Greekwatchdog]

You own part of this business! So call them, email them, write them an old fashioned "offical" letter. Tell them how you feel! I would encourage all shareholders to do the same. Aside from the ethical, concern for residents perspective, any decision they make that has the potential to negatively impact on their reputation, and potential future sales, impacts on shareholders.

Good to know I'm not the only one having a somewhat emotional reaction to this announcement. If OCA ever do this, I will rip them to shreds! Yes, really 

I would expect nothing less from you being so passionate about the sector and you have first hand knowledge on the front line so thats great for us on this side.

[Basil]

As a shareholder and its significant I am bitterly disappointed in this. Why the front line? Its makes no sense considering there is a nurse shortage.

They better not complain again of a nurse shortage after this.

If any area needs to be cut its the clowns making the decisions. After all they are the ones who failed to offer shareholders the $1.70 offer.

Be an interesting ASM. Might have to practice my darts.

LOL love it.  Due to a very unusual, (for me), mistake I made when selling out some time back I got left with 7 shares, yes, I know, it's a 'huge" holding for me lol
Cheap ticket to corporate entertainment at the ASM.  Even more fun would be transferring 1 of them to Untamed so she can attend as well.

[Greekwatchdog]

So takeover annouced. Board are a bunch of bananas

Arvida has entered into an agreement with Stonepeak BidCo for the sale of 100% of Arvida shares at a price of NZ$1.70 per share in cash by means of a scheme of arrangement ("Scheme").

• The Arvida Board unanimously recommends that shareholders vote in favour of the Scheme, subject to the Scheme consideration being within or above the independent adviser's valuation range for Arvida shares and in the absence of a superior proposal.

• The Scheme represents a 65% premium to Arvida's share price of NZ$1.03 per share.[1]

• Arvida's Board and executive committee have actively and cooperatively engaged with Stonepeak to facilitate this agreement and are committed to concluding the sale.

• The Scheme is subject to a number of conditions, including New Zealand High Court approval, approval at a special meeting of shareholders of Arvida and consent under the Overseas Investment Act 2005.

Arvida Group Limited ("Arvida") is pleased to announce that it has entered into a Scheme Implementation Agreement ("SIA") with Stonepeak Alps BidCo Limited ("Stonepeak BidCo"), under which Stonepeak BidCo would acquire all of the shares in Arvida at NZ$1.70 per share. Stonepeak BidCo is an indirect subsidiary of funds managed or advised by Stonepeak, a leading alternative investment firm specialising in infrastructure and real assets with approximately US$71.2 billion of assets under management.

Details of Scheme

Under the SIA, on satisfaction of all conditions and completion of the Scheme, Stonepeak BidCo would acquire all shares in Arvida at NZ$1.70 per share.

Stonepeak has carried out a comprehensive due diligence evaluation of Arvida and has committed to proceed with the acquisition subject to receipt of customary regulatory and shareholder approvals, including consent of the statutory supervisor for Arvida's villages, together with other customary conditions. The Scheme is not subject to financing or due diligence conditions.

A special meeting of shareholders to approve the Scheme is expected to be held during the last quarter of this year. Arvida shareholders do not need to take any action at the current time.
The Board has concluded the offer price of NZ$1.70 per share in cash represents compelling value, given the material premium, high certainty to completion, and overall attractiveness to Arvida shareholders.

Key value metrics include:

• a 65% premium to Arvida's share price of NZ$1.03 per share on 19 July 2024;

• a 82% premium to Arvida's volume weighted average share price of NZ$0.94 per share over the 30 trading days prior to this announcement;

• an acquisition multiple of 0.83x based on FY24 Net Tangible Assets of NZ$2.05 per share; and

• an implied equity value of ~NZ$1.2 billion.

A copy of the Scheme Implementation Agreement accompanies this announcement.

Unanimous Directors' recommendation

The Arvida directors unanimously recommend that Arvida shareholders vote in favour of the Scheme and each director has undertaken to vote all Arvida shares held or controlled by them in favour of the Scheme, subject to:

i. no Superior Proposal (as defined in the SIA) being received by Arvida; and

ii. the Independent Adviser's Report concluding that the Scheme consideration is within or above the independent adviser's valuation range for Arvida shares.

Grant Samuel has been engaged to prepare the Independent Adviser's Report to assist Arvida's shareholders in assessing the merits of the Scheme.

Arvida Chair, Anthony Beverley said: "The Board of Arvida initiated a value recognition programme in May in order to maximise value for shareholders. Through that process it became clear that the Stonepeak proposal was superior to the other options the Board considered were realistically available to the Company and enabled shareholders to realise 100% of their investment at a material premium to the current share price. We are pleased to present this offer to shareholders. We believe that the Scheme is the best way to expedite the transaction and value recognition for shareholders. There is both a defined timeframe and an agreed price that all shareholders receive.

"We have confidentially appraised certain of our institutional shareholders, representing in aggregate ~18% of shares in Arvida, and they have advised that they are supportive of the offer.

"The Arvida and Stonepeak teams have worked constructively to reach this agreement and we are committed to concluding the sale. An important consideration for us in engaging with Stonepeak was that Stonepeak supported Arvida's business model and our strong focus on providing New Zealanders with exceptional retirement living and care. We believe Stonepeak has a sound understanding of Arvida and the retirement village market, and Stonepeak's strategy is aligned with Arvida's value and vision. Stonepeak intends to bring significant capital and operational expertise to support Arvida's senior management team and business plan; from a resident and staff point of view it will be very much business as usual."

Indicative timetable and next step

A scheme of arrangement is a court-approved process that requires both:

(i) 75% or more of all votes cast by shareholders must be in favour of the Scheme; and

(ii) more than 50% of the total voting rights attaching to Arvida shares must be voted in favour of the Scheme.

A Scheme Booklet containing information relating to the Scheme, the reasons for the Independent Directors' unanimous recommendation and meeting information, together with a copy of the Independent Adviser's Report, is currently expected to be sent to Arvida shareholders in Q3 2024.

The Board encourages shareholders to carefully consider all the materials that will be provided to them and to seek their own professional advice when it comes to the vote; either in person or by proxy.

"Based on recent feedback the Board has received from institutional and retail investors, including since the announcement of the value recognition programme, we are very confident of shareholder support for the Scheme."

Arvida shareholders will have the opportunity to vote on the Scheme at a meeting in Q4 2024. If all the conditions are satisfied or, where capable of waiver, waived, the Scheme is expected to be implemented in late Q4 2024. Note that these dates are indicative and subject to change.

Arvida is being advised by Cameron Partners Limited, Forsyth Barr Limited and Chapman Tripp.

[Left Field]

Good news for patient holders. Well done.

IMO the sector is ripe for consolidation and this should boost interest.

[winner (n)]

GWD says .... Board are a bunch of bananas

Seems instos are pretty keen to take the cash

[Greekwatchdog]

Yes thanks W69. A bit of a joke. NTA goes up since late last year when they disclosed they had rejected an offer then accept the same valued offer today. The Board and CEO haven't got a clue. Get out of jail free card.