Navitas Limited (ASX:NVT) shares are up 21% this morning after investors learned of a takeover bid from the BGH Consortium.
Navitas is a global education business offering courses at 120 colleges in 31 countries.
The takeover bid:
The takeover offer is from a consortium of BGH Capital, AustralianSuper and former CEO Mr Rodney Jones.
The indicative offer is for $5.50 cash per share, which is a 26% premium to the closing share price yesterday for the $2 billion education business.
Shareholders can alternatively also take up the option of $2.75 per share and one new share for every two Navitas shares in a new unlisted company that will initially own Navitas, which will be called RollCo.
AustralianSuper and Mr Jones currently hold 5.4% and 12.6% of the Navitas shares, respectively. Mr Jones will sell 50% of his shares and roll the rest into RollCo.
The Navitas Board said they have limited Mr Jones’ access to various company information, employees and meetings whilst they assess the offer with help from financial adviser Goldman Sachs and legal adviser Ashurst.
The Board emphasised that there is no guarantee of a takeover and the offer comes with a number of conditions.
Navitas has disappointed investors this year with the share price down 20% since the start of 2018. The company recently reported a statutory $55.3 million loss in its FY18 result.
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