G8'S CHAIR QUITS AFTER FAILED TAKEOVER BID

Written on the 24 September 2015 by Jenna Rathbone

G8'S CHAIR QUITS AFTER FAILED TAKEOVER BID

G8 Education (ASX:GEM) chairperson Jenny Hutson has fallen on her sword after the failed takeover bid for childcare rival Affinity Education (ASX:AFJ).

Hutson, who was appointed to the board in 2010, today announced she is resigning from the G8 board to 'pursue other opportunities'.

However, it is widely understood that she has been forced to take responsibility for failing to secure Affinity which would have added 161 childcare centres to G8's portfolio.

Her resignation comes just days after G8's ambitions of acquiring Affinity abruptly came to an end when private equity group Anchorage Capital Partners confirmed it had secured funds to proceed with its $212 million takeover.

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

G8, Australia's largest listed childcare centre operator, gave up on a bidding war for the smaller competitor after private equity firm Anchorage Capital Partners upped its price for Affinity from 90c to 92c.

Hutson says it has been a 'privilege and pleasure' to lead the board for the past five years.

"G8 Education has declared and paid quarterly dividends since 2010 and has had 10 consecutive periods of relative outperformance as compared with prior periods," says Hutson.

"Having led the proposed acquisition of Affinity Education it is time for me to step aside and for there to be a renewal at board level."

Non-executive director Matthew Reynolds will take on the role of acting chairman while a permanent replacement is sought.

Reynolds paid tribute to Hutson's service to the company. He highlighted that G8 has become highly acquisitive over the past five years since Hutson's appointment.

G8 has grown to own 457 centres, with 203 of them added in 2014, and G8's latest profit result reflected this significant run of acquisitions which helped revenue jump 66 per cent to $310.9 million for the six months to June 30.

"Ms Hutson has made a very significant contribution to G8 Education during its transformation from a small listed company to a significant operator in the childcare and education sector," says Reynolds.

"I am very confident that the board transition will be a positive on and the performance of G8 Education will continue to be exceptional."

G8's shares slipped about 3 per cent to $3 following the news this morning with more than two million shares changing hands.


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

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

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...

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