The Navitas Limited (ASX: NVT) share price will be on watch on Friday after it provided an update on the $5.825 cash per share takeover approach by the BGH Consortium.
Last month the company agreed to the terms of a binding offer from the BGH Consortium, under which BGH will acquire 100% of the share capital of Navitas by way of a scheme of arrangement.
The Navitas board unanimously recommended Navitas shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to an independent expert concluding that the scheme is in the best interests of Navitas shareholders.
What was today's update?
This morning Navitas advised that the Australian Government's Foreign Investment Review Board (FIRB) has confirmed that it has no objection to the proposed acquisition, bringing it one step closer to completion.
Though, there are still a number of other conditions that still need to be satisfied before the scheme can become effective, including the scheme being approved by Navitas shareholders.
Is this a good deal for shareholders?
The offer was a 34% premium to the closing price of Navitas' shares prior to BGH's first offer, which I think is a good deal for shareholders.
In light of this and the unanimous recommendation of the board, I suspect shareholders will vote in favour of the scheme and lead to the takeover completing in the coming months.
What now?
Investors looking for exposure to the education sector may want to take a look at IDP Education Ltd (ASX: IEL) instead.
The student placement services and language testing company has been an impressive performer in FY 2019, posting a 34% jump in net profit after tax to $40.7 million in the first half.
And while its shares are looking fully valued now, it could be worth considering with a long term view due to its strong growth potential.
