Company news: Aveo
Aveo announced it will acquire the 27% stake in RVG it does not already own. RVG is a wholesale fund owning a portfolio of retirement villages (mainly located in Sydney and Melbourne). Aveo will now be able to roll out its operational approach across these villages - for instance continuum of care (including co-ordinaton of third-party support services for residents with such a requirement), Aveo Way contracts and pursuit of development opportunities.
The acquisition was made at a 13% discount to the current RVG security value, with a cost of ~$100m. A capital raising was conducted to fund the acquisition cost. An additional $25m was raised, which will be used to repay debt.
First Samuel participated in the raising on clients' behalf.