APM takeover deal falls over

APM Human Services has gone into a trading halt after revealing the $1.8 billion takeover offer from private equity group CVC has fallen over.  

The ASX-listed human services provider requested the trading halt this morning, divulging CVC had advised it was unable to proceed with the revised $2 per share cash offer.

“APM requests the granting of a trading halt in APM’s securities listed on the ASX pending the release of an update in relation to the receipt of a letter from CVC advising that they are unable to proceed to finalise a transaction on terms consistent with their non-binding offer,” the ASX announcement read.

Michael Anghie-led APM also advised that CVC’s four-week exclusivity period had ended.

This period was initially granted for CVC to complete confirmatory due diligence, complete refinancing and the execution of transaction documents.

Today's update comes a month after CVC lobbed a revised $2 cash per share offer to acquire all the shares in APM through a scheme arrangement.

The $1.8 billion offer had a range of terms, notably that specific shareholders - including APM executive chair and founder Megan Wynne, Mr Anghie and major shareholder Madison Dearborn Partners - would receive a majority of their consideration in CVC holding company shares rather than cash. 

APM’s board recommended shareholders support the revised offer, after opting to reject the previous $1.60 cash per share bid lobbed earlier that month.

Despite the takeover offer falling over, the activity brought APM’s battling share price back above the $1 mark, now frozen at $1.63 per share.