BPP, Europe’s largest accountancy training company and operator of one of the UK’s leading law schools, said this morning that it had agreed a £303.5 million cash takeover offer from Apollo Global, a US education group.
The 620p per share offer is at a 70p per share premium to BPP’s closing price on April 28, the day before it announced details of an approach by Apollo Global.
David Sugden, BPP Chairman, said in a stock exchange announcement: “For shareholders, it presents an opportunity to realise an attractive premium in cash for their shareholding at a time of economic uncertainty.”
BPP shares opened up 8 per cent at 615p and were trading at 617p at 10:00.
Apollo Global, which was formed to invest in the education services sector, is a joint venture between Apollo Group, a US education provider, and Carlyle, the private equity firm.
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BPP, which trains thousands of lawyers, accountants and bankers each year, has shrugged off the worst of the recession, with its examinations and law businesses continuing to perform well.
However, sales directly exposed to the financial services sector and other short-term discretionary courses have weakened.
Enrolments to law and accounting courses are more resilient to economic downturns, and BPP also holds the status of being the only for-profit body with the right to award degrees.
Today’s sale, which must be approved shareholders, comes about two years after BPP rejected a 725p-a-share approach from Carter & Carter, the now collapsed training group, claiming that it significantly undervalued the business.