Aspen Group said it entered a deed of confidentiality with Discovery Holiday Parks Pty Ltd as regards its investment management proposal for the Australian property company.

The two parties have started reviewing whether the proposal can result in a binding deal that would be in the best interest of Aspen Group's security holders, the company said in a release, adding that the discussions may not lead to a transaction. Any binding proposal that Discovery puts forward remains subject to approval by the holders of Aspen's securities.

Aspen will hold an extraordinary general meeting Jan. 11 to consider separate investment management propositions from Discovery and Mill Hill Capital, Aspen's largest security holder.