Mayfield Childcare confirms takeover approach at $1.28 per share

ASX listed early childhood education and care provider Mayfield Childcare has confirmed that it has received a proposal from its largest shareholder Genius Childcare to acquire 100 per cent of the company for $1.28 per share.

The news comes just four weeks after Mayfield rebased CY2022 profit expectations lower and announced the early termination of a management agreement with a Genius affiliated business that had been in place since the acquisition of 14 Genius centres in 2021. 

Mayfield’s relationship with Genius began in October 2021 when it acquired fourteen centres from the private operator for $39.2 million of which 80 per cent of the consideration was in shares priced at $1.15 and 20 per cent in cash. 

Post the transaction Genius owned around 33 per cent of the enlarged group.

As per Mayfields latest press release the Group confirmed that they had “received a number of confidential approaches from multiple parties expressing interest in acquiring the Company and has been in discussions with these parties in the context of maximising shareholder value.”

Before adding that “The Genius Proposal represented the highest offer price from the Proposals received and had the least conditions attached to completion.”

The deal values Mayfield at around 6.9x CY2022 EBITDA and the price of $1.28 represents a 32.6 per cent premium to the closing price of $0.965 per share on 1 December 2022. 

To review the update please see here.