Diversified property developer AVID Property Group Australia Pty. Ltd. submitted an offer to buy all the shares in Australian peer Villa World Ltd. at an indicative price of A$2.23 per share through a scheme of arrangement.

The indicative proposal received March 8 and made public March 14 is subject to certain conditions, which include it completing due diligence, the execution of a scheme implementation agreement and approval from AVID's directors.

The offer also assumes that Villa World's capital comprises 125.5 million shares and 2.0 million performance rights. AVID is also requiring the target to not sell any material assets after receiving the proposal.

According to AVID, it expects to fund the transaction using a combination of its internal resources, shareholder equity contributions and debt facilities.

Villa World said the resulting transaction from the scheme implementation deal will be subject to certain conditions, including the unanimous recommendation from its directors, approval from Australia's Foreign Investment Review Board and the majority of Villa World's shareholders.

However, the company stressed it is not guaranteed that AVID will be granted due diligence or the proposal will result in a transaction or the board will recommend the proposal. Villa World added that it is now in the process of appointing advisers for the offer.