Aveo Group to be acquired by Brookfield Property for A$2.195 per share
Aveo Group announces that it has entered into a Scheme Implementation Deed with Hydra RL BidCo Pty Ltd and Hydra RL TopCo Pty Ltd, entities controlled by Brookfield Property Group on behalf of its managed funds, under which BidCo undertakes to acquire 100% of the outstanding securities of Aveo by way of a trust scheme and a company scheme of arrangement for consideration representing total value of A$2.195 per security. Under the terms of the Scheme, if implemented, Aveo securityholders will be entitled to receive total cash of $2.195 per security. A conditional scrip consideration alternative is also available which provides Aveo securityholders with the potential to participate in a "stub equity" vehicle which would give them future exposure to Aveo. The Cash Consideration represents a c.28% premium to Aveo's undisturbed closing security price of $1.71 on 12 February 2019 being the last undisturbed closing security price prior to Aveo updating the market on 13 February 2019 that it had received a number of indicative non-binding bids from parties interested in a whole of company transaction as part of Aveo's strategic review. The Cash Consideration represents an acquisition multiple of c.29x FY19A EV / Unaudited EBITDA. The Brookfield Transaction is subject to a limited number of conditions and is not subject to financing or due diligence. Based on the Cash Consideration, the full Aveo Board of Directors unanimously recommends that Aveo securityholders vote in favour of the Scheme in the absence of a superior proposal, subject to an Independent Expert concluding that the Scheme is in the best interests of Aveo securityholders. Aveo intends to send a Scheme Booklet to Aveo securityholders in early October 2019. The Scheme Booklet will contain information relating to the Scheme. The Scheme Booklet will also contain an Independent Expert's Report providing an assessment as to whether the Scheme is in the best interests of Aveo securityholders. The Scheme meetings are expected to be held in late October 2019, and, if approved, the Scheme would be implemented this calendar year.