Schrole Group welcomes $18m takeover bid from TES Global

Education technology company TES Global has made a takeover bid for Perth-based Schrole Group (ASX: SCL) that values it at $18.15 million.

Schrole has agreed to the proposed buy-out for a cash price of $0.48 per share, representing a 203% premium to the last closing price of $0.16 on 14 June and a 160% premium to the 30-day volume-weighted average price of $0.187.

Board support

In the absence of a superior offer and subject to an independent expert confirming that it is in the company’s best interests, the board of Schrole has unanimously recommended shareholders vote in favour of the transaction at a meeting to be held around September 2024.

It said the deal provides certainty of value to Schrole shareholders as well as the opportunity to offload 100% of their shareholdings for cash.

Each director has declared their intention to vote all their Schrole shares – representing approximately 11% of total shares on issue – in favour of the takeover.

Education platform

TES is an education technology platform supported by the world’s largest community of teachers to create “intelligent” online products and services.

It supports over 19,000 UK, Australian and international schools with various digital solutions.

TES is wholly owned by Canadian private equity firm Onex Partners, a subsidiary of Canadian investment manager Onex Corporation.

Strong synergy

“Our board believes this transaction represents a compelling opportunity for shareholders to realise immediate and certain value,” Schrole managing director Rob Graham said.

“We believe our deep expertise and focus on delivering outstanding outcomes for our clients will be enhanced by the breadth of resources and strong market reputation that TES brings.”

“Working with TES will provide excellent outcomes for our clients and our team and we look forward to partnering with the organisation going forward.”