Navis takeover bid values SEGi at $360m

The bid prices the Malaysian company's ordinary shares at MYR 1.714 apiece and the warrants at MYR 1.214 each. It represents a price-to-earnings ratio of 17.1x.

Navis, also based in Malaysia, invested via its Navis Asia Fund VI and Navis MGO I GP, which in turn injected the capital through their investment holding company, Pinnacle Heritage Solutions (PHS).

SEGi's group managing director and founder, Dato' Sri Clement Hii, and PHS will collectively hold around 61.5% of the company's share capital, assuming all the warrants are exercised.

"At high-quality institutions, Malaysia offers a unique and value-adding learning experience for many foreign students," commented Navis Partner Tan Chow Yin, who joins SEGi's board. "Navis has some experience in this sector and has been waiting for the right opportunity to participate in the Malaysian education landscape."

Chow Tin added that Navis saw SEGi as a reputable and well-run institution with strong growth opportunities that required capital. For that reason it believes privatization is the best strategy, as the business' earnings are likely to be affected in the short-term.

Earlier this month, it was widely suspected that Navis might be about to make a bid for the company, although it was not known whether the other shareholders - such as Hii, who owns 32.2%, Datu Putit Matzen, who holds 29.9%, and Datuk Chee Hong Leong, who has 6.78% - would accept it due to SEGi's strong growth over the past two years.

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• Topics
• Southeast Asia
• Buyouts
• Consumer
• PIPE
• Navis Management
• Education
• Malaysia