Shareholders favouring Aveo Group's proposed $1.3 billion takeover by Brookfield had taken an increasing role in the company's register over the past two weeks and this made the November shareholder vote more likely to succeed, the retirement village operator said on Wednesday.

Many long-term shareholders had sold out earlier this month when Aveo said it had agreed with Brookfield on a $2.195-per-share price, chief financial officer David Hunt said. They had been replaced by hedge funds which sought to profit from the 3¢ difference in the current market price and the implied $2.15 price of the shares that included the 4.5¢ dividend, he said.