Aspen Group's separately-owned holiday parks fund has backed rival suitor Discovery Holiday Parks' increased offer for the portfolio.
On Friday, Discovery increased its offer to take over the Aspen Parks Property Fund, which owns a portfolio of 24 holiday parks across Australia and was valued at $223 million at the end of the 2014-15 financial year.
The revised Discovery offer was in response to Aspen sweetening its bid to merge with APPF to 60 cents per share, in response to Discovery's first offer of 58 cents per share.
Aspen Group initially offered shareholders 53 cents per share to merge with the fund.
Today, the APPF board recommended shareholders accept the new bid from Discovery, which has a total value of around $146 million.
APPF also said it was withdrawing its support for Aspen Group's bid to merge with the fund.
Aspen Group has a 42 per cent stake in the fund, while it also has a management contract in place until 2019.
The group today said it had not yet made a decision in relation to Discovery's offer, including its shares in APPF.