(Alliance News) - Shares in Wey Education PLC shot up in Thursday afternoon after Inspired Education Holdings Ltd launched a bid for the online education services provider.
Inspired has offered 47.5 pence per Wey share, with the company's board unanimously backing the deal. The offer values Wey at GBP70.4 million.
Shares in Wey were 41% higher in afternoon trade at 45.86p each.
Wey believes the offer will be "positive for students, staff and teachers that remain with the business".
"Inspired has made an all-cash offer at a price per share that the Wey Education board feels it can support and a premium to the current share price that allows shareholders to realise a gain fairly reflecting Wey Education's future growth opportunities," Wey added.
The offer represents a 46% premium to Wey's closing price on Wednesday of 32.5p and a 37% premium to the volume weighted average price of 34.6p over the last month.
Inspired owns and operates over 60 private-pay K-12 schools with 48,000 students enrolled across 20 countries.
Inspired needs approval from 75% of Wey shareholders for the scheme to become effective.
Wey Chair Barrie Whipp said: "Wey Education has grown to be a leader in online education, with the goal of providing a personal learning experience for all its students. We now educate approximately 4,000 students across our two brands, InterHigh and Academy21.
"We have, in recent years, become aware of Inspired, and fully believe the Inspired team have a deep understanding of the market, and a strong commitment to online education and it has an understanding of the history and importantly, legacy of Wey Education."
Founder, Chair & Chief Executive of Inspired Nadim Nsouli said: "We are pleased to receive the recommendation from the board of directors for the acquisition of Wey Education, a long-term leader in online education with a strong reputation in the UK and international markets. We believe this represents an exciting development for both Inspired and Wey Education, which will support the combined group's growth nationally and internationally.
"Wey Education, which is providing a British curriculum education through its online live teaching and learning platform, will now be able to benefit from the support of a global schools group with leading educational experts, strong brand recognition, and premium physical facilities across the globe."
By Paul McGowan; paulmcgowan@alliancenews.com
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