Below is a story published in the Wall street Journal today. Collins Acquisitions secured a very good deal for our client and we look forward to seeing the raise go through promptly.
G8 Education Ltd. is seeking to raise up to 34.5 million Australian dollars (US$36 million) through an equity placement, according to a term sheet seen by Deal Journal Australia.
A total of 30 million shares are to be placed by the childcare operator at A$1.15 each, representing 14.6% of the stock currently on issue, the term sheet stated.
Australia’s G8 Education entered a trading halt early Monday before announcing the acquisition of 16 childcare and education centers in Victoria and Queensland states for A$28 million, which represented a multiple of four times forecast earnings before interest and tax, or Ebit.
The raising, which G8 Education will use to fund the acquisition and for working capital, is at a 10.9% discount to the stock’s last-traded price of A$1.29.
Petra Capital is managing the placement for G8 Education and the offer is due to close on Tuesday.
G8?s substantial shareholders include funds managed by Perpetual Ltd., Wallace Infrastructure, Northcape Capital, Paradice Investments and Challenger Ltd..