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Advtech U-turn on Maravest deal – Business Day

Advtech U-turn on Maravest deal – Business Day

Private education group Advtech has compromised on the funding structure of its proposed acquisition of small rival Maravest after two of its biggest shareholders registered opposition last week. On Friday, Advtech issued a Stock Exchange News Service statement detailing a revised transaction that would see the R450m deal settled with a combination of cash and scrip. Advtech, which owns Crawford Colleges and Trinity House, initially proposed an all-share settlement with an issue of 54.4million new shares at 802c per share to the vendors of Maravest. But Kagiso Asset Management and Coronation Fund Managers, collectively holding 40% of Advtech’s issued shares, objected vehemently. They said existing shareholders would be materially diluted by the issue as the price was pitched well below their 1,100c per share fair value estimate for the company’s shares.

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