Curro Confirms It’s Bidding For Advtech
Under fire Independent School Education provider Curro Holdings Limited has confirmed that it is in talks with ADvTECH Limited and is planning to buyout its rival company.
“Shareholders are referred to the company’s cautionary announcement dated 12 June 2015. Further to press reports and public speculation, Curro confirms that it is in discussions with ADvTECH Limited,” Curro said through a SENS statement.
ADvTECH also confirmed the developments: “The board of ADvTECH can now confirm that the unsolicited proposal referred to was received from Curro Holdings Limited.”
It remains to be seen if ADvTECH shareholders will accept the deal considering the controversy around Curro’s racism allegations and the mutiples the independent school group trades on.
Keith McLachlan, fund manager at Alpha Wealth, whose fund owns shares in ADvTECH says he will only accept Curro’s offer if it pays cash but that would come down to the valuation. He will not accept script, as it comes at a 190x price: earnings.
On whether the deal would come apart due to competition concerns, McLachlan dismissed the possibility of facing resistance from both the Department of Education and the Competition Commission due to the combined market share of these two companies.
“That’s a little bit of misnomer as Curro owns just about one per cent of the market share while ADvTECH has about four per cent of the market share,” he revealed.
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