Navitas takeover costs hit $20m

Navitas has disclosed that it will incur costs of about $20 million on its acquisition by a BGH consortium, including fees to professional advisers and extra payments to its directors and executives.

The payments were detailed in the scheme booklet lodged today with the ASX.

Navitas said payments to its professional advisers, including financial adviser Goldman Sachs, law firm Ashurst and public relations firm FTI Consulting, would be about $16.9 million.

Independent expert Lonergan Edwards & Associates was paid $400,000. It concluded the scheme was fair and reasonable and in the best interests of Navitas shareholders.

The education services company will make special retention payments totalling up to $2.4 million to its executives.

This includes a payment of up to $750,000 to chief executive David Buckingham.

In addition, the Navitas board has approved special ‘exertion’ payments to its own members to reflect the extra work they have undertaken during the takeover process.

Chair Tracey Horton and director Tony Cipa, who led Navitas’ bid response committee, will be paid $100,800 on top of their normal fees.

Other directors will be paid $30,800.

The Navitas board rejected an initial proposal put forward last year by the BGH Capital consortium, which includes company founder Rod Jones.

The consortium eventually responded with an improved takeover proposal that values Navitas at $2.1 billion.

Navitas shareholders will vote on the scheme at meetings to be held next month.