Think boosts guidance again as Alceon withdraws from takeover, Busy Bees remains in the frame
Think Childcare Group has boosted CY020 guidance, the second increase in two months, as strong trading in November and positive conditions in December push expected earnings up by a further 9 per cent whilst also confirming that early bidder Alceon have withdrawn their takeover proposal and that Busy Bees remains in the frame.
The Group now expects to make earnings before interest, tax, depreciation and amortisation (EBITDA) of $24.0 million to $25.0 million in CY2020, up from $22.0 million to $23.0 million announced on 2 November 2020, and substantially higher than the $15.0 million to $17.0 million provided at their half year results in August 2020.
In addition, Think have confirmed that their in-house incubator, Think Childcare Development, has increased their pipeline by 40 per cent with the addition of a further eleven greenfield sites and that external incubator partners have commitments of around eleven sites.
The total greenfield pipeline now numbers around 50 sites with delivery expected over the next 24 months.
Alceon withdraws from takeover fray, Busy Bees continues to conduct due diligence
Alceon Private Equity, the Sydney based firm that initially launched a $1.35 per security offer for 100 per cent of Think on the 16 November 2020 has elected not to launch a counter-proposal to Busy Bees’ $1.75 per security offer and has subsequently withdrawn from the process.
Busy Bees’ offer, which was made on 23 November and was subject to a range of conditions, remains in force with the company currently working through its due diligence which is being supported by Think.
No further statements regarding timing were made in the update and Think confirmed that it would continue to keep the ASX informed of any new developments in accordance with its continuous disclosure obligations.
To read the statement please click here.
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