G8 Education [ASX: GEM] previously offered to buy Affinity Education [ASX: AFJ] at a much higher price than its current AUD 162m (USD 122m) bid unveiled last week
According to the paper at a meeting on 24 April, which was attended by both G8 and Affinity’s chairmen and chief executives, G8 suggested a nil premium merger at AUD 1.10 per Affinity share. G8’s latest offer, which has been rejected by Affinity as highly conditional and opportunistic, values the group at AUD 0.69 per share, the article added.
The paper said at the first meeting Affinity is believed to have indicated that it would consider the offer and the groups planned to meet again on 24 June.
The item cited unnamed sources as saying that at the groups’ second meeting G8 proposed a new nil premium merger and revised the offer price down to AUD 0.835 per share. Affinity rejected the offer on 25 June but noted that it would be willing to continue talks with G8, the item noted.
Last week G8 acquired a 16.5% stake in Affinity at AUD 0.70 per share and lodged an offer for one share in G8 for each 4.61 Affinity shares held.
The report noted that Affinity’s share price fell to AUD 0.54 per share last week due to an earnings downgrade.
An article in The Australian said Affinity is lodging a formal complaint with the Australian Securities and Investment Commission, arguing that G8 should have disclosed the merger negotiations before raising its stake in Affinity.
The paper also noted Affinity is said to have engaged Luminis Partners and Corrs Chambers Westgarth to advise on G8’s offer.
As per The Australian; AFR
G8 Education [ASX: GEM] previously offered to buy Affinity...
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