Nord Anglia has rejected a £180m takeover approach from Hong Kong-based Barings Private Equity Asia (BPEA). The 450p-a-share cash proposal was considered by the Nord Anglia board to undervalue the business given ‘the strong growth prospects of the company’.

Recent disposals including Leapfrog Day Nurseries to ABC Learning last year have left Nord Anglia focused on running British international schools, mainly in eastern Europe and east Asia, together with a learning services division which includes its school inspection business with Ofsted.

In May this year BPEA raised $1.52bn to create the largest regional growth fund in Asia. The fund targets growing businesses in Asia with enterprise values between $100m and $500m that require capital for expansion. It is thought BPEA is keen to develop Nord Anglia’s international schools in China and other parts of east Asia.

Prior to the announcement, Nord Anglia’s share price had already risen 46.6% since the start of 2008 and following BPEA’s offer the shares jumped a further 117.75p to 427p. The share price at 30 June closed at 384p.
BPEA is believed to be considering whether to launch a higher offer. If successful, BPEA may consider the company’s UK business as surplus to requirements.

www.nordanglia.com
www.bpeasia.com