APM shares soar as board rejects takeover bid
Make us a preferred source
Make us a preferred source on Google
The news: APM Human Services International shares soared close to 50% following its announcement that its board had rejected a takeover bid by CVC Asia Pacific.
The numbers: The takeover proposal made on 16 February by the private equity firm included a $1.60 cash per share consideration less dividends paid to shareholders.
The Australian Financial Review flagged the potential deal on Sunday evening. After announcing that the APM board would not pursue the proposal, the company’s shares surged 47.8% to $1.23 by 3:25pm AEDT.
The context: The board said the proposal did not sufficiently reflect the fundamental value of APM and the potential of its market leading platform globally.
While the board noted that APM was currently operating in a challenging environment at a historic low point of the unemployment cycle, it remained confident in its outlook.
APM is an international human services provider that includes assessments, allied health and psychological intervention, media, psycho-social and vocational rehabilitation, vocational training and employment assistance, and community-based support services.
What they said: APM executive chair Megan Wynne said: “APM remains focused on supporting our people, continuing to deliver the highest-quality services globally for our clients and stakeholders, and executing on our strategy”.
“The board and I have full confidence in APM’s management team to deliver long-term value to our shareholders. I am confident in the outlook for APM,” Wynne said.
The source: ASX announcement
