US-based private equity firm Stonepeak will buy out New Zealand’s Arvida Group for NZ$1.24 billion ($745.74 million) excluding debt as the investment firm looks to cash in on the demand for retirement living and aged care services.

Stonepeak, which has assets of around $71.2 billion, late Sunday said it is offering NZ$1.70 per Arvida share, which reflects a 65% premium to Arvida’s last close on Friday.

“Demand for high-quality retirement living in New Zealand has demonstrated strong resiliency through cycles and attractive growth in recent years,” Stonepeak said in a statement.

Arvida on Monday said it had accepted the offer, which was not subject to any financing or due diligence conditions.

Arvida in December said it had received a takeover approach in September, without giving further details around the timing of the offer.

Shares of the company had hit a monthly high of NZ$1.26 on Sept. 22. The stock has since dragged 18.5% to a close of NZ$1.03 on Friday.

Arvida in December rejected a same NZ$1.70 apiece buyout approach from an offshore infrastructure fund on account of the offer being highly conditional and not in the best interests of shareholders.

Arvida however accepted Stonepeak’s takeover offer on the back of the deal offering a compelling value and high certainty to completion.

Reuters could not immediately confirm if Stonepeak was the firm which had previously offered to take Arvida private.

($1=1.6628 New Zealand dollars)

Reuters