Apollo Education Gets Revised $1.14 Bln Offer From Consortium Of Investors

(RTTNews) - Apollo Education Group Inc. (APOL) said that it has received a revised offer from a consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and the Najafi Companies.

As per the revised terms, which represent a best and final offer, the consortium has increased the price at which it would acquire the company to $10.00 per share in cash for both Class A and Class B shares.

The final offer price represents a 52 percent premium over the closing price on Jan. 8, 2016, immediately prior to the announcement that the Board of Directors was pursuing strategic alternatives, and a 29 percent premium over Apollo Education Group's 30-day volume weighted average stock price for the period ended Apr. 29, 2016.

Apollo Education noted that its board evaluated the revised offer and reiterates its recommendation that shareholders vote FOR the adoption of the merger agreement.

"We are delighted that the increased purchase price will provide our shareholders with $10.00 per share in cash at closing. The Board believes that the increased offer clearly makes this transaction an excellent outcome for shareholders, particularly given the headwinds facing the company," said Greg Cappelli, Chief Executive Officer of Apollo Education Group.

At the April 28 Special Meeting of Shareholders, nearly 58 percent of the Class A votes cast were FOR the proposed transaction, with approximately 80 percent of the outstanding shares voted to date. However, the votes to date in favor of the transaction do not yet constitute a majority of the outstanding shares.

As previously announced, the Special Meeting of Shareholders to vote on the revised proposal is scheduled for May 6, 2016.

In February 2016, Apollo Education Group announced a definitive agreement to be acquired by a consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC (APO), and Najafi Companies for $9.50 per share in cash. Upon completion of the deal, Apollo Education Group will be privately held.