KPMG was commissioned by the board of Aveo to conduct an independent assessment of the price and offer terms of the Brookfield outright purchase of Aveo. This week they came out ‘approving’ of the deal.
Aveo has reported: “The Independent Expert, KPMG Financial Advisory Services (Australia) Pty Ltd, has concluded that the Schemes, based on the Cash Consideration, are in the best interests of Aveo Securityholders in the absence of a Superior Proposal.
The Independent Expert has assessed the value of an Aveo Security to be between $2.08 and $2.39 and has concluded that as the Cash Consideration is within this range, the Schemes are in the best interests of Aveo Securityholders.
In assessing the premium implied by the Cash Consideration, the Independent Expert notes that it is not appropriate to compare the Cash Consideration to NTA per Aveo Security since, consistent with industry practice, the Directors’ valuations of the assets as reflected on Aveo’s balance sheet do not include a large share of divisional expenses, all unallocated corporate expenses and certain group capital expenditure.
In reaching his conclusion, the Independent Expert identified that the Schemes follow an extensive sale process as part of the strategic review that was competitive and public and that, accordingly, it is likely that the Cash Consideration represents the maximum arm’s length value that could be realised for Aveo at the present time”.
At the same time ASIC has approved the deal and the Supreme Court has approved a meeting of security holders to meet in November to vote on the sale – the last step.