Navitas rejects $1.4bn BGH, AustralianSuper takeover offer


A consortium including BGH Capital and the AustralianSuper pension fund has seen its A$1.97bn ($1.4bn) takeover offer for adult education company Navitas rejected.

A statement from the Navitas board said it had informed the consortium that the proposal “does not reflect the value implied by management’s strategy and plan”, but added it was willing to engage and give the consortium a “detailed management presentation” ahead of potential full access to due diligence.

BGH, AustraliaSuper and Navitas co-founder Rod Jones made the $5.50 per share offer for the Australian business last month, which would have provided a 26.4 per cent premium on the company’s closing share price on Tuesday 9th October, the last trading day before the offer was made public.

Navitas provides educational services to over 80,000 students, through its operations throughout Australia as well as in North America, Europe, Africa and Asia

Navitas’ full year results for 2018 show a post-tax loss of $55.3m, which the company cites as a result of $123.8m of one-off charges from its plan to sell the portfolio of its careers and industry division.

BGH raced across the finish line in May for the biggest-ever first-time private equity fund focused on Australia and New Zealand by pulling in about A$2.6bn.

The final close came just months after the firm was set up by Ben Gray and Simon Harle, previously of TPG Capital and ex-Macquarie Capital investment banking team leader Robin Bishop.

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