for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Financials

UPDATE 1-Australia's Aveo in discussions with Brookfield on $859 mln offer

(Adds details on offer, premium, Aveo share movement, background on offer)

Aug 6 (Reuters) - Australia’s Aveo Group said on Tuesday that Brookfield Asset Management Inc had offered A$1.27 billion ($859.4 million) in cash to acquire the retirement-home operator.

The disclosure is the first time Aveo has put a value on the offer since it first revealed it was in talks with the Canadian firm nearly a month ago.

Brookfield’s proposal values Aveo at A$2.195 per share, representing a 8.1% premium to the company’s last close.

Aveo’s acquisition would give Brookfield a sizeable chunk of Australia’s aged-care industry, which has seen its valuations slide to attractive levels in the wake of a public inquiry into mistreatment and abuse of residents in aged-care facilities.

The offer price would be reduced by the value of any distributions declared by Aveo after entering into an acquisition agreement, the company said.

Aveo’s shares were 3% lower at a more than two-week low, compared to a 2.6% fall in the broader market

Brookfield was not immediately available for a comment. ($1 = 1.4778 Australian dollars) (Reporting by Aditya Soni in Bengaluru; Editing by Stephen Coates)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up