LEGAL and financial training group BPP said yesterday it had agreed an all-cash takeover offer from rival Apollo Global which values the business at £303.5m, ir 620p-a-share
BPP – the UK’s only for-profit business college with the power to award degrees – said that the offer represents a 70 per cent premium to its closing price on 28 April, the day before it announced details of an approach by Apollo Global, a subsidiary of Apollo Group.
“For shareholders, it presents an opportunity to realise an attractive premium in cash for their shareholding at a time of economic uncertainty and at a very early stage in the development of our Business School,” said BPP chairman David Sugden, who was advised by Hawkpoint Partners on the terms of the deal.
Altium Securities analyst Roddy Davidson said he considered the offer “generous” given the late cycle nature of BPP’s business, and concerns regarding possible weakness in bookings for legal and accountancy courses over the summer.
Apollo Global is 80.1 per cent owned by US education provider Apollo Group, with Carlyle Group holding the remaining 19.9 per cent stake.
Shares in BPP closed nine per cent higher at 618p per share.