Equity group to buy Navitas for $2.3b

A consoritum comprised of private equity firm BGH, AustralianSuper and former Navitas chief executive Rod Jones have agreed to buy the global education provider for $2.3 billion.

Navitas shareholders will receive $5.825 per share if they approve the offer at a scheme meeting, expected to be held in June.

The board of directors is unanimously recommending shareholders vote in favour of the scheme.

The offer is a 33.9 per cent premium to where the shares were trading in October when the consortium made its initial approach.

Navitas shares were in a trading halt on Thursday, last trading for $5.62 each.

Earlier in the day, the company got a $5 million full-year profit boost after a UK court ruled its local subsidiary was exempt from the British equivalent of the goods and services tax (GST).

The UK Supreme Court yesterday upheld a finding exempting SAE Education from paying the local valued added tax (VAT).

The education services provider said the decision is final, clearing a path for it to reclaim VAT and legal costs that will amount to a one-off full-year profit contribution of about $5 million.