Navitas’ share price arrowed up while review of indicative takeover offer received from BGH Consortium remains underway.
In an update to the acquisition offer proposed by BGH Consortium, education provider Navitas Limited (ASX: NVT) stated that the company is currently into the thorough assessment of the offer received on 10 October 2018. Further, the management informed that Director Mr. Rodney Jones has been kept out of the review process to refrain from any inherent conflict that may arise between Mr. Jones’ role as a director of Navitas and his interests as the third partner of BGH Consortium.
Well, let’s take a recap what was this offer all about?
The offer relates to acquisition bid that Navitas Limited has received by BGH Consortium on 10 October 2018, to acquire 100% stakes in Perth-based education provider Navitas at an offer price of $5.50 cash per Navitas share.
The consortium comprises of three interested parties, that are private equity firm BGH Capital Pty (BGH), Pension Fund AustralianSuper Pty Ltd as trustee for AustralianSuper and Navitas co-founder and Director Rodney Malcolm Jones and his controlled entities.
Since Mr. Jones forms part of bidder, Navitas’ Board emphasizes that any statement released by Mr. Jones in relation to this indicative offer for Navitas acquisition forms part of his personal view and has nothing to do with Board’s decision and recommendation. Navitas told that Board is yet to draw a final decision in the best interest of its shareholders.
However, the proposal to acquire the complete ownership of Australia’s listed education company was made at an attractive 26% premium on the last close then and has also given a second option to the form of purchase consideration. Under alternative option, NVT shareholders will be entitled to receive $2.75 cash per share and one share in newly formed unlisted company RollCo in exchange for every two shares held in Navitas Limited. Also, it has been heard that this acquisition may take Navitas private.
Meanwhile, Mr. Jones has been suspended from access to company’s information and participation of Board’s meetings, on Board’s approval so as to avoid any conflict of interests and form true and fair view on the proposal.
No final date has been given by the Board for the disclosure of final recommendation to the bid, but it informed that outcome of its review will be out in the market shortly. Till then the company recommends the shareholders to take no action in relation to the proposal as the certainty for proposal turning into transaction does not currently exist.
Navitas Limited is a Perth-based leading education provider across the globe. It got listed on Australian Securities Exchange in the year 2004 and operates through more than 120 institutions in 31 countries. While having its footprints across Australia, Europe, North America, Africa and Asia, the group specializes in University pathway programs, creative media education, Health and social service education, English language courses to foreign students, professional and industry placement and settlement services.
Ahead of the review update, Navitas’ stock price moved up 0.193% or $0.010 to $5.200 on 16 October 2018 (12:51 PM AEST). In the past one year, NVT has witnessed a decent performance change of +6.35%, however, it is getting stronger since last few months as it surged 22.99% in the past three months.
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