Retirement home operator Aveo has received a confidential takeover offer and flagged a slump in its full-year profit, citing subdued property market conditions.
A “preferred party” had made a confidential, non-binding and conditional indicative takeover proposal following extensive due diligence, it said in a statement, without naming the party or putting a value on the offer.
The independent board committee had indicated that the transaction would be discontinued if an agreement could not be reached by July 22.
Aveo now expected full-year underlying profit of about $50 million, down from $127.2 million in 2018.
Potential customers were delaying decisions to sell their homes and move into retirement accommodation due to weakness in house prices, the company said.
Aged care firms in Australia are also under pressure from an ongoing independent public inquiry into abuse and mistreatment in the sector.
At 1037 AEST, Aveo shares were 11 per cent lower at $1.85.