AFFINITY'S SHORT-LIVED ASX RIDE COMES TO AN END

Written on the 1 December 2015 by Nick Nichols

AFFINITY'S SHORT-LIVED ASX RIDE COMES TO AN END

AFFINITY Education (ASX:AFJ) will end its short-lived era as a listed company when it delists from the Australian Securities Exchange at the close of trading today.

The delisting is the final stage of the $213 million buyout of the Gold Coast-based childcare centre provider by Sydney's private equity group Anchorage Capital Partners.

The move ends the takeover saga that has dogged Affinity for the better part of this year, starting in April when it was approached privately by listed childcare giant G8 Education (ASX:GEM).

Since then, the deal has been subject to a Takeovers Panel probe and has cost G8's former chair and co-founder Jenny Hutson her job after the seasoned corporate raider over-played her hand in the takeover tussle.

The Takeovers Panel found that Hutson had connections with three separate parties, Taxonomy, JB Super Fund and WestBridge Holdings, that acquired a significant stake in Affinity.

It later ordered that the Affinity holding accepted by G8 from Taxonomy be sold and that it withdraw acceptances from JB Super Fund and WestBridge Holdings.

The failed bid cost G8 the opportunity to bolt on 161 childcare centres to its growing portfolio, forcing Hutson to fall on her sword.

Anchorage Childcare Pty Ltd will acquire all the listed capital of Affinity after the close of trading today through a scheme of arrangement approved by shareholders and ratified by the Federal Court this week.

The company is being acquired for 92c a share, which compares with the 80c a share offered by G8 in August.

Affinity has had a tough two years as a listed company after failing to deliver on its prospectus forecasts.

The company was primed for a takeover in July when its shares suffered a 40 per cent fall in a single day's trading.

That's when G8 made an opportunistic move with a scrip bid, but the Affinity board rejected the offer and sought out higher bids from other parties.

From the outset, the Affinity board has backed the offer that eventually emerged from Anchorage, arguing it is the best outcome for shareholders.

Affinity shares were originally issued for $1 each and have traded as high as $1.46.


Author: Nick Nichols

Latest News

THE 2017 MELBOURNE TOP 50 COMPANIES REVEALED: NUMBERS 40 TO 31

Our countdown to the 2017 Top 50 Melbourne companies continues with the next 10 on the list from 40 to 31, which f...

CANNABIS COMPANY SECURES PERMITS FOR NEW PLANTS TO BEGIN CULTIVATION

MEDICAL Cannabis company Cann Group Limited (ASX: CAN) will receive its first plant material and start cultivation of...

CHARTER HALL SNAPS UP SALAMANDER BAY CENTRE FOR $174M

RETAIL investment trust Charter Hall (ASX: CQR) has purchased the regional Salamander Bay Centre in New South Wales f...

$12 MILLION OFFICE SALE UNDERPINS MILTON REVIVAL

ONE of Milton's well known office buildings has sold for $12.88 million, supporting the resurgence of the popular...

Related News

AFTERPAY GOES TRANS-TASMAN WITH TRADE ME DEAL IN NEW ZEALAND

AFTERPAY Holdings Ltd (ASX: AFY) has entered into an agreement with New Zealand trading site Trade Me Group Ltd (A...

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter