Retirement village company Arvida to be sold to US private equity firm

Foreign investors have scooped up another local company, with retirement village operator Arvida to be sold to US private equity firm Stonepeak.

Shareholders have voted overwhelmingly to approve the $1.2 billion dollar takeover offer.

The offer accepted this year was similar in price and content to one which the Arvida board rejected in December last year, because it undervalued the company.

But pressure exerted by some big shareholders saw the board do an about face.

Arvida chair Anthony Beverley told the meeting that weakening business conditions and economic headwinds led to the rethink.

"The continued decline and under performance of our share price was a key consideration for the Board. We considered it materially undervalued the intrinsic value of the business."

He said the board had looked at all options to "accelerate value recognition for shareholders".

"This was a comprehensive process that yielded the scheme as the best option for shareholders."

The deal needs a handful of regulatory approvals, which should be settled next month, with shareholders paid out in mid-November.