Think Childcare (ASX:TNK) share price lifts 4% on buyout offer

The Think Childcare (ASX: TNK) share price is up more than 4% today after receiving a buyout offer from a private equity group.
The post Think Childcare (ASX:TNK) share price lifts 4% on buyout offer appeared first on Motley Fool Australia. –


Think Childcare Ltd (ASX: TNK) advised the ASX today that it has received a non-binding and indicative buyout proposal from private equity group, Alceon Group Pty Ltd.  The offer is for 100% of Think Childcare’s shares, and the indicative offer price currently stands at $1.351 – a premium on the current share price of $1.31. 

The Think Childcare share price opened today at $1.31, up by 4.8%, after the announcement.

More details about the offer

Alceon Private Equity has indicated it is willing to offer all cash, or a combination of cash and unlisted shares in a newly incorporated holding company. 

Think Childcare has granted Alceon a period of exclusivity until 18 December 2020 to complete its due diligence process. The company says the transaction is subject to various conditions such as regulatory as well as shareholder approval. As such, it has requested its shareholders not to take any action at this time.

What is Think Childcare and why might it sell the business?

Think Childcare owns and operates childcare facilities in Australia. It focuses on operating its 30 long day childcare facilities for children between the ages of 6 months and 6 years old.

The company has faced difficulties this year as coronavirus lockdown restrictions also closed down many of its childcare centres. As a result, the company is under pressure to service its debts. The latest balance sheet data for 30 June shows that Think Childcare has $35.8m liabilities that are due within a year, and $211.9m in the year following.

 Although Think Childcare holds $11.8m in cash and has $8.48m of receivables due within 12 months, the much larger liabilities figure is casting a towering shadow over its liquidity and current market cap of just $76 million.

Think Childcare share price performance

As mentioned, childcare centres were among the first businesses shut down by the government when the pandemic struck. The Think Childare’s share price went from $1.41 at the start of 2020 to 60 cents by the end of March, at the height of the restrictions. The share price has since regained much of its value. It is trading up 4% at $1.30 at the time of writing.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Think Childcare (ASX:TNK) share price lifts 4% on buyout offer appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!