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Navitas valued at AUD 1.9bn by consortium
Posted on Wednesday, 10 October 2018 09:59
A sweetened AUD 2.31 billion (USD 1.64 billion) takeover offer for Navitas from a founder-private equity consortium has curried favour with the Australian education company’s board. BGH Capital, AustralianSuper, Rodney Jones are offering 582.50 Australian cents apiece – 6.0 per cent higher than the first non-binding proposal of 550.00 cents made in October - to acquire the remaining 82.0 per cent stake not already held. The bid represents a premium of 34.0 per cent to the unaffected close on 9th October and of 33.0 per cent to the one-month volume weighted average price. It also represents a multiple of 15.5x enterprise value to pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of AUD 148.50 million for the 12 months to 31st December 2018. Navitas’ equity is worth AUD 2.10 billion and the company had net debt of AUD 207.69 million and minority interests of AUD 0.40 million, as at 31st December 2018. Zephyr, the M&A database published by Bureau van Dijk, shows the public takeover will be one of the largest targeting an Australian company announced in 2019 to date. In addition, it will be among the top ten biggest take-privates by value of a global education services provider on record. Navitas operates through two major divisions to offer education, including university programmes and services for creative media, English language training and settlement, to students and professionals. The company has locations throughout Australia, as well as countries across North America, Europe, Africa and Asia. It had reported revenue of AUD 477.40 million in the six months to 31st December 2018 (H1 2018: AUD 456.70 million). EBITDA totalled AUD 49.80 million (H1 2018: AUD 66.70 million), and net profit attributable to shareholders reached AUD 21.40 million (H1 2018: AUD 25.00 million). © Zephus Ltd