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Navitas valued at AUD 1.9bn by consortium
Posted on Wednesday, 10 October 2018 09:59
Shares in Navitas jumped 21.8 per cent on news BGH Capital, AustralianSuper and former managing director Rodney Jones have teamed up to make a cash offer that values the Australian education company at AUD 1.97 billion (USD 1.40 billion).
At AUD 5.50 apiece, the indicative proposal represents a 26.0 per cent premium to the last unaffected closing price and comes with an alternative scrip option.
It also comprises several assumptions, such as: consolidated net debt will be no higher than AUD 191.00 million, on 30th June 2019; due diligence; and there will be no additional issues of shares or other convertible securities, among others.
Navitas generated earnings before interest, tax, depreciation and amortisation of AUD 81.96 million on revenue of AUD 930.98 million in the 12 months ended 30th June 2018, and the company incurred a net loss of AUD 55.85 million.
AustralianSuper and Jones already own 5.4 per cent and 12.6 per cent stake, respectively, in the company, though the ex-chief executive has agreed to sell half of his equity interest for cash and roll over his remaining holding into the acquisition vehicle formed in order to make the bid.
If an offer goes ahead, the resulting acquisition would be one of the largest targeting a global education and learning services provider on record, according to Zephyr, the M&A database published by Bureau van Dijk.
The most recently announced purchases in this field include Jacobs Holding planning to take over Cognita Schools for USD 2.59 billion and Dalian Sunlight Machinery buying Beijing Mygym for USD 516.65 million, among others.
Zephyr shows the aggregate annual value of global acquisitions targeting companies operating in this sector has increased over last couple of years to the extent where 2018 is already a banner year, despite the fact there are still more than two months remaining on the calendar.
© Zephus Ltd