12/04/2019 - 11:23

FIRB green lights $2.1bn Navitas takeover bid

12/04/2019 - 11:23

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The federal government's Foreign Investment Review Board (FIRB) has given the tick of approval to a private consortium’s proposed acquisition of global education provider Navitas.

FIRB green lights $2.1bn Navitas takeover bid
Rod Jones is part of a consortium that bid $2.3bn for Navitas.

The federal government's Foreign Investment Review Board (FIRB) has given the tick of approval to a private consortium’s proposed acquisition of global education provider Navitas.

In a statement to the ASX, Navitas said FIRB approval was a condition to the proposal.

“That conidition has now been satisified,” Navitas said.

The consortium comprised of Melbourne-based private equity firm BGH, AustralianSuper, and former Navitas chief executive Rod Jones signed an agreement to buy the global education provider in March for $2.1 billion.

Navitas shareholders will vote on the $5.825 per share offer at a scheme meeting, which is expected to be held in June.

The company’s board of directors has unanimously recommended shareholders vote in favour of the offer, which is a 33.9 per cent premium to when the consortium made its initial offer in October.

A scheme booklet containing information about the planned acquisition is anticipated to be sent to shareholders next month.

Shares in Navitas were down 0.9 per cent at 1pm AEDT to trade at $5.76 each.

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