Think Childcare receives a $79 million takeover offer
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Think Childcare (ASX:TNK) is currently considering a takeover offer made by Alceon Group.
Alceon has made a $1.35 per share bid for Think Childcare – worth $79 million.
The group is an Australian private equity play founded in 2010 and with $3.8 billion in investments, predominantly in the retail sector.
Alceon is no stranger to ASX small cap land. Among other investments it is the largest shareholder in retailer Mosaic Brands (ASX:MOZ) and executive director Richard Facioni is the company’s chairman.
The offer was not a significant premium to Friday’s price. However it was a premium to its volume weighted average price (VWAP) in the past month and quarter – by 23 per cent and 46 per cent respectively.
Think’s board has not endorsed the offer yet but has established a committee to consider it. It gave Alceon a four-week period for Due Diligence and has agreed to negotiate a deal in good faith.
The ultimate deal will be subject to approval of its shareholders, even if the board gets behind it.
Think Childcare, similar to its peers in the childcare sectors, saw an impact from COVID-19 restrictions earlier in the year but things have turned around since – its net profit rose by 62 per cent.
Back in August, it told shareholders it had a pipeline to deliver new services with an end value of $100 million over the next 36 months.
Think Childcare shares rose a modest 4 per cent this morning. They are down 2 per cent in the last 12 months having nearly recovered its COVID-19 losses.