Company News

BUZZ-Australia's Aveo Group extends losses on dismal FY profit outlook

** Shares of retirement-home operator Aveo Group extend losses to a second session, falling as much as 3.8% to A$1.895

** Co on Monday said it expects annual profit to more than halve due to weak property market conditions in Australia

** The firm expects 2019 underlying profit to be about A$50 mln ($34.8 mln); co reported an underlying profit of A$127.2 mln last year

** Co had also revealed that a “preferred party” had made a confidential, non-binding and conditional indicative takeover proposal following extensive due diligence

** AFR on Monday reported here that Canadian firm Brookfield Asset Management has emerged as the frontrunner after an auction run for Aveo, and is in talks with potential funders to finalise its offer

** Stock up 23.1% this year, as of last close ($1 = 1.4376 Australian dollars) (Reporting by Niyati Shetty in Bengaluru)