Aveo Edges Closer To Brookfield Buyout

By Glenn Dyer | More Articles by Glenn Dyer

Is it a farewell from Aveo to Canadian investment giant, Brookfield? Nope, it seems the ASX listed aged care operator and Brookfield are moving closer to completing a deal first revealed in a statement issued on July 4.

In a statement to the ASX yesterday Aveo said it is continuing discussions with Brookfield Property Group and while there is no certainty at the moment that the deal will proceed, it seems from comments yesterday that one is close to being struck.

Aveo said talks were continuing “with a view to entering into definitive agreements” to “give effect to the non-binding and conditional indicative proposal” submitted by Brookfield.

“Significant progress has been made in those negotiations. On this basis and in good faith, the independent board committee is continuing to engage with Brookfield in order for the parties to conclude their negotiations on the agreements leading to a Scheme of Arrangement for a whole-of-company transaction,” Aveo Group tells the market today.

According to previous statements a deal was supposed to have been done by yesterday.

In its June trading update (which revealed the company’s 2018-19 result will be atrocious) Aveo also said: That an Independent Board Committee overs seeing the strategic review and negotiations with Brookfield had stated “that if the agreements leading to a Scheme of Arrangement cannot be agreed by Monday, 22 July 2019, the whole-of-company sale transaction process will be discontinued.”

There was no discussion in yesterday’s statement of this deadline, so presumably, the deal is close to being done, although Aveo insists that it is not certain.

Aveo shares rose 1.3% to $1.95 yesterday.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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