NZ's Evolve Education to resume dividend, acquires childcare centres; Shares climb

Embark Education

04/03/2021 22:21

** Shares of childcare and education centre operator Evolve
Education Group Ltd  EVO.NZ  gain as much as 7.3% to NZ$1.330
-their biggest intraday percentage gain since Feb. 16
    ** Evo says it intends to resume payment of dividends from
the final quarter of 2021  urn:newsml:reuters.com:*:nFWN2L21BK
    ** Co says acquisition of 10 childcare centres in Australia
with total licenced capacity of 816 children per day
    ** Acquisition for upfront contract pricing of NZ$27.13 mln
($19.50 mln) for earnings before interest, taxes, depreciation,
and amortization (EBITDA) of NZ$6.93 mln per annum
    ** says if EBITDA totals NZ$8.20 mln for the 12 months
period post settlement, then total payment would be NZ$32.13 mln
    ** Co says acquisitions will be earnings per share positive
from settlement
    ** Stocks hits its highest level since Feb 22
    ** As of the last close, EVO down 10.8% this year
($1 = 1.3910 New Zealand dollars)

 (Reporting by Aditya Munjuluru in Bengaluru)
 ((aditya.srivastsav@thomsonreuters.com))