Aevum bids $73m for unlisted IOR group

At June 30 2009, Aecum made the all-scrip offer to IOR which owns villages in South Australia's Victoria and Queensland, a total value of $80 million.

Steve Mann, chief executive of Aevum said that Auvem would be issuing 48.3 million new shares to IOR's unit holders, they will also be receiving 8 Aevum shares for every 9 IOR shares.

Based on Auvem's last closing price on Friday, which is $1.53, this leaves the Victoria company to be valued roughly around $73 million.

Nevertheless, it seems that the final value would be based on Aevum's shares price at the time of transaction according to Mr Mann.

Also, IOR's unit holders would be needed to approve this deal, which is unanimously supported by its directors.

Besides, Mr Mann explained that IOR made the initial offer regarding the merge with Aevum. After demutualising in 2007, IOR had planned to list, however, the onset of the financial crisis put paid to an initial public offering.

A merger would be a good strategic fit for Aevum according to Mr Mann as it gives rise to a national platform for the merged entity which will in directly enhance the Aevum brand.

Stockland holds 14% of Aevum and it declined to offer any comments regarding the proposed merger which will potentially dilute its shareholding in Aevum.