G8 BACKS RIVAL TAKEOVER

Written on the 15 September 2015 by Jenna Rathbone

G8 BACKS RIVAL TAKEOVER

G8 EDUCATION (ASX:GEM) appears ready to cash in a profit from its takeover tilt at childcare sector rival Affinity Education Group (ASX:AFJ), after backing a $213 million takeover offer by private equity firm Anchorage Capital Partners. 

The move has effectively quashed any hope of a bidding war between G8 and Anchorage which has upped its price for Affinity from 90c to 92c a share.

Affinity today endorsed the revised cash-based offer and has entered into a scheme implementation deed. 

G8, Australia's largest listed childcare centre operator, says it intends to vote in favour of its rival's scheme of arrangement with Anchorage, and will not extend its takeover offer which closes September 28. 

This means G8's ambitions of acquiring the company will come to an end, and allow it to book a handsome profit on its short term investment in its fellow Gold Coast rival.  

G8 has been after Affinity since July, launching a hostile takeover bid for its struggling rival after Affinity's stock plunged around 20 per cent in one day following a soft earnings warning.

G8 originally put forward a scrip bid for Affinity worth 70c a share, before increasing this to 80c, and gave investors the option of taking cash or shares.  

Anchorage's offer is a 15 per cent premium to G8's cash offer of 80c per share.

G8 owns 19.89 per cent of shares in Affinity, which is currently worth $42.3 million at the Anchorage bid price. The company also has an interest in a further 23.45 million shares, among them some that have been acquired through its current takeover offer.

This brings its total interest in Affinity to more than $63.8 million.

G8's shares are believed to have been acquired at a considerable discount to the current offer price and the company is likely to book a handsome profit on the deal should the Anchorage buyout proceed.

Affinity has been contacted to comment, while G8 refused to comment further.


Author: Jenna Rathbone
About: Jenna Rathbone is a Queensland-based journalist who writes on a range of issues including business and property affairs and social issues.
Connect via: Twitter

Latest News

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

QUEENSLAND WEATHER UPDATE: MAJOR AIRPORTS STILL IN BUSINESS DESPITE CANCELLATIONS AND DELAYS

DESPITE the storms and flash floods which are continuing to wreak havoc across several Queensland cities and towns...

STARS ALIGN AS GOLD COAST ICON REBRANDS

TODAY marks a shift in the Gold Coast's constellation as the iconic Jupiters Hotel and Casino officially rebra...

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

Related News

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter