Apollo Education Doesn't Have Enough Votes Yet to Approve Sale
29 April 2016 - 3:50PM
Dow Jones News
Apollo Education Group Inc. said it hasn't yet received enough
shareholder votes to approve its planned $1.1 billion sale, and
adjourned a shareholder meeting from Thursday until May 6.
The sale to Apollo Global Management LLC, Vistria Group and
Najafi Cos. was announced in February. It encountered resistance
from shareholder Schroders PLC, a U.K. asset-management firm.
Apollo Education, which owns University of Phoenix, said nearly
58% of the Class A shares voted so far have been in favor of the
deal. However, these votes don't yet constitute a majority of
shares outstanding.
On Tuesday, Apollo Education said in a filing that if the sale
isn't completed, the company could "face serious consequences"
including a share-price decline that could hurt access to
liquidity. The company said that if the sale doesn't take place, it
will review strategic alternatives including a sale of the
University of Phoenix.
Apollo Education has seen enrollment numbers deteriorate as
stricter regulation has reduced for-profit colleges' share of U.S.
financial aid and hurt the industry's reputation. The company has
moved to shut some of its locations and trim jobs, while expanding
abroad.
Given the headwinds at home, school operators including Apollo
and DeVry Education Group Inc. are more optimistic about prospects
in friendlier climates overseas.
The planned buyout is worth $9.50 a share. Shares closed
Thursday at $7.58, up 15 cents.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
April 29, 2016 01:35 ET (05:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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