Aveo sale by the end of the week

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Aveo was forced to make an announcement today on its sales process following an article in the Australian Financial Review this morning.

The company confirms that it is in the final stages of negotiation with Canada’s Brookfield Property Group at a price of $2.195 per security.

The AFR story says Aveo investors are likely to be given a choice to either to take the cash offer or join in the shareholding of the new Aveo vehicle. 24% equity holder Mulpha is likely to stay in.

At $2.195 the company would be valued at $1.27 billion. (It has debt of about $700M).

In June 2017, with its security price at $3.60, it was valued at closer to $2.1 billion.

The Four Corners program and the housing slump will have cost investors $800 million.

Expectations are, the final agreement will be completed by Friday – with every caveat that it is a ‘non-binding and conditional indicative proposal’.

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