Curro Holdings Ltd. said the South African schools operator is still considering an offer for competitor Advtech Ltd., even after its rival said the proposal isn’t in the best interests of the company.
Advtech’s major shareholders have said they’d accept an offer of 13 rand a share, Johannesburg-based Curro said in a statement on Wednesday. The offer would be based on a share swap ratio of 2.59 Advtech shares for every Curro security, with Curro shares valued at 33.65 rand, the company said. The proposed offer also includes a 50 percent cash element for Advtech shareholders who do not wish to accept Curro shares.
Advtech shares gained as much as 7.8 percent to 12.50 rand, having fallen 2.9 percent on Tuesday, when the company said it wasn’t interested in the takeover proposal. The stock traded 6.4 percent higher at 12.34 rand as of 4:27 p.m. in Johannesburg, valuing the company at 5.6 billion rand ($453 million). Curro shares fell 2.3 percent to 33.71 rand.
South Africa’s education system was ranked the fifth-worst among 144 countries in a survey by the World Economic Forum last year, increasing the attraction of private schooling for those who can afford it. The school pass rate for final-year students fell for the first time in five years in 2014 after changes to the curriculum.