Private equity target Navitas (NVT)

Stock

Navitas (NVT) $5.28 as at 10/10/2018

Event

The long-time takeover target Navitas has finally received a serious offer that could put the company in private hands. The global education provider has today announced a bid was received from a consortium led by private equity firm BGH capital, offering all cash at $5.50 or shareholders the opportunity to own stock in a private version of the company. The offer represents a 26% premium to yesterday’s close, however NVT was trading above the offer price for much of January this year which may play on investors’ minds. BGH did announce that the consortium includes some of the biggest shareholders including he co-founder Rod Jones and Australian Super, as well as taking a sizable stake in the business themselves to boost voting power.

Navitas (NVT) Chart

Market Matters Take/Outlook

A decent deal, a reasonable premium but plenty of takeover talks in Navitas have stumbled which explains the ~4% discount NVT is currently trading at. There is some ways to go and it wouldn’t surprise us if other suitors came to the table.