Aspen Group (ASX: APZ) is property group which is involved in the operation of providing accommodations at a reasonable price. On 11 December 2018, the Independent Board Committee (IBC) provided an update on the investment management proposals which were received for Aspen Group and the extraordinary general meeting (EGM) which was scheduled for 2 pm on 14 December 2018. Following this news, the share price of the company went up by 0.524 percent as on 11 December 2018.
The Independent Board Committee is comprised of Mr. Clive Appleton who is the chairman of the company and Mr. Guy Farrands who is the Non-Executive Director of the company. The company is having the discussions with Discovery Holiday Parks Pty Limited and Mill Hill Capital Pty Ltd with regards to the investment management proposal. And at this stage, IBC has decided that it will adjourn the EGM until 21 December 2018 (AEST 10:00 AM).
Recently on 7 December 2018, IBC provided an update about the alternative investment management proposal which was received from Discovery on 23 November 2018.
IBC and its advisers are having discussions with Discovery to seek more clarification regarding certain aspects of the investment management proposal to establish whether it could lead to a binding proposal which is in the best interest of securityholders and superior to the proposal from Mill Hill Capital Pty Ltd.
On 23 November 2018, Discovery submitted an indicative non-binding proposal in relation to the investment management of Aspen Group and it also acknowledged that Aspen has already received a proposal from Mill Hill Capital for investment management. However, Discovery believes that their Proposal is representing a superior value outcome for Aspen Group security holders.
In the financial year 2018, Aspen Group recorded a statutory profit of $0.8 million and an operating profit of $3.0 million after tax. The earnings per security of the company were 4.2 cents in FY 2018. The Company’s balance sheet remained robust, with Net asset value (NAV) of $1.19 per security which was benefitted from a $5.1 million revaluation increase on businesses during FY 2018. The NAV was also benefitted from the 5 cents per security special capital distribution paid to security holders during FY 2018.
At the end of FY 2018, the company was having net cash of $8.8 million and a $55 million of bank facility to facilitate the growth objectives of the company. During FY 2018, the company completed its divestment of non-core assets after the sales of its major industrial asset in Spearwood, Perth and the divestment of two land holdings in the Whitsundays and Midvale, Perth. Further, the company acquired Big4 Koala Shores Holiday Park and Darwin FreeSpirit Resort in FY 2018.
Meanwhile, in the last three months, the share price of the company decreased by 2.05 percent as on 10 December 2018. APZ’s shares traded at $0.960 with the market capitalization of circa $91 million as on 11 December 2018 (AEST 4:00 PM).
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