Johannesburg - Curro Holdings [JSE:COH] said the South African schools operator is still considering an offer for competitor Advtech [JSE:ADH], even after its rival said the proposal isn’t in the best interests of the company.
Advtech’s major shareholders have said they’d accept an offer of 13 rand a share, Johannesburg-based Curro said in a statement on Wednesday. The offer would be based on a share swap ratio of 2.59 Advtech shares for every Curro security, with Curro shares valued at 33.65 rand, the company said. The proposed offer also includes a 50 percent cash element for Advtech shareholders who do not wish to accept Curro shares.
Advtech shares gained as much as 7.8% to R12.50, having fallen 2.9% on Tuesday, when the company said it wasn’t interested in the takeover proposal. The stock traded 5.17% higher at R12.20 as of 08:27 in Johannesburg, valuing the company at R5.6bn. Curro shares fell 0.61% to R34.30 at the same time.
South Africa’s education system was ranked the fifth-worst among 144 countries in a survey by the World Economic Forum last year, increasing the attraction of private schooling for those who can afford it. The school pass rate for final-year students fell for the first time in five years in 2014 after changes to the curriculum.