Navitas Limited (ASX: NVT) shares are up 12% thanks to receiving an improved takeover offer from the BGH Consortium.
Navitas is a global education provider that provides services to students and professionals with university programs, creative media education, professional education, English language training and settlement services.
Why Navitas shares are taking off on the takeover
The BGH Consortium has adjusted its non-binding takeover offer to $5.825 per share and the Navitas directors intend to unanimously recommend this new offer to shareholders subject to exclusive due diligence and no superior offer appearing.
This new offer is $0.325 per share better than the offers put to Navitas shareholders last year.
Navitas shares are currently trading at $5.52, suggesting that there is still a $0.305 difference between the suggested takeover price and the current price. This is the type of arbitrage that Rask Podcast guest Luke Cummings from Harvest Lane Asset Management likes to take a look at. Listen to the podcast before you dive into Navitas shares head first.
Indeed, the BGH Consortium will have exclusive due diligence access until 18 February 2019, so there is limited upside between now and then.
If I were a shareholder I would consider selling my shares and re-investing into high quality ASX businesses with growing profits such as the ones in the free report below.
[ls_content_block id=”14945″ para=”paragraphs”]
