Private equity firm Anchorage Capital Partners has snaffled Affinity Education Group (AFJ) in a $212 million bid.
Anchorage’s higher offer forced the other suitor, G8 Education (GEM) to abandon its offer and support Anchorage.
G8 Education chair Jenny Hutson said Anchorage offering investors 92 cents a share forced G8 to abandon its bid.
“It is about rational economics that we are a buyer at 80 cents and at the Anchorage offer at 92 cents we think it is in the best interest of G8 shareholders to be a seller of Affinity,” Ms Hutson said.
Affinity’s board, which has been fighting the hostile bids from GEM for two months, has given the Anchorage deal its unanimous support.
Anchorage will take Affinity into private hands less than two years after it listed in December 2013 with an issue price of $1.
The G8 Education board has not only abandoned its offer, but will take Anchorage’s money and run. It owns just under 20% of Affinity.
But that had risen to 24.6% with the flow of acceptances under its offer.
A scheme of arrangement meeting has been set for November 20. The deal is subject to Anchorage securing financing by 10am on September 21.
