Australia's APM Human Services rejects $960 mln buyout offer from CVC Asia Pacific (updated)

APM Human Services International

18/02/2024 23:36

(Recasts paragraph 1, adds more details from paragraph 2)
       Feb 19 (Reuters) - Australia's APM Human Services
International  APM.AX  said it had turned down an A$1.47 billion
($960 million) takeover bid from private equity firm CVC Asia
Pacific as the offer did not "sufficiently reflect the
fundamental value" of the company.
    The employment services firm said on Monday that the offer
did not reflect the potential of its market platform globally. 
    "Although APM is currently operating in a challenging
environment at a historic low point of the unemployment cycle,
the board remains confident in the outlook for APM," the company
said in a statement. 
    The firm confirmed it had received a conditional and
non-binding indicative proposal on Friday where funds or
investment vehicles advised by CVC Asia Pacific Limited would
acquire the company for A$1.60 per share, almost double APM's
close on Thursday of A$0.83. 
    The proposal had also included an option for the company's
shareholders to receive all or part of the consideration in
unlisted scrip in CVC's acquisition entity.  
    The company reported a preliminary underlying net profit
after tax for the half-year ended Dec. 31 of A$55 million ($36
million), a 36% drop from a year earlier.
 ($1 = 1.5314 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru; Editing by Chris
Reese and Himani Sarkar)
 ((Archishma.Iyer@thomsonreuters.com;))