Canadian investment group Brookfield has been named as Aveo's (ASX: AOG) preferred takeover partner.
The senior living provider announced this morning it is in talks with Brookfield about a possible takeover.
While the suitor has been named as Aveo's "preferred" takeover partner, the two still need to enter into definitive agreements leading to a scheme of arrangement to give effect to the takeover.
"There continues to be no certainty that it will result in an acceptable offer for Aveo securityholders or that a transaction will be implemented," says Aveo.
The Australian company will provide a further update on or after 22 July regarding the potential takeover.
The residential provider first indicated that it was in talks with a takeover partner on June 24 as part of its strategic review.
During May and June Aveo had been "actively engaged" with the preferred partner, now revealed to be Brookfield. At the time the company had already given Aveo a confidential non-binding conditional takeover proposal.
In June Aveo indicated if an agreement leading to a takeover could not be agreed to by 22 July then the sale transaction process would be discontinued.
Aveo will release its full year results on 28 August 2019, and, as previously indicated by the company, it expects annual profit to more than halve due to the weak property market.
On June 20, 2019, Brookfield announced it was raising $795 million in equity which it is currently deploying as part of a spending and takeover spree.
Shares in Aveo are up 3.3 per cent to $2.01 per share at 3pm AEST.
Business News Australia
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