Insights

Why the RedHill Education (ASX:RDH) share price is rocketing 18% higher

This ASX share has been rocketing higher on Monday…
The post Why the RedHill Education (ASX:RDH) share price is rocketing 18% higher appeared first on The Motley Fool Australia. –

The RedHill Education Ltd (ASX: RDH) share price has been a very strong performer on Monday.

In afternoon trade, the education and agency services provider’s shares are up 18% to 91 cents.

Why is the RedHill Education share price storming higher?

Investors have been bidding the RedHill Education share price higher today after it provided yet another takeover update.

Hot on the heels of the collapse in talks between RedHill Education and UCW Ltd (ASX: UCW) last week, this morning the company announced its entry into an indicative, non-binding term sheet with iCollege Ltd (ASX: ICT).

According to the release, this follows iCollege’s decision to increase its off-market takeover offer from 7.6 to 9.5 iCollege shares for each RedHill share, subject to satisfaction with the findings of due diligence.

Based on the iCollege share price at the close of play on Friday of 11 cents, this implies an offer of ~$1.045 per share.

The release notes that both the iCollege and RedHill boards and management teams have held several collaborative discussions to better understand the contribution of each business to a potential merged entity. These discussions culminated in an agreement to further investigate what appears to be a sound strategic rationale including synergies, geographic spread and education sector expansion.

iCollege’s Chairman, Simon Tolhurst, commented: “iCollege has been encouraged by the collaborative approach taken by the RedHill Board which has seen agreement reached on next steps. iCollege has considered all additional stakeholder feedback and decided, that subject to entering into a Bid Implementation Agreement with RedHill and satisfactory mutual due diligence the share exchange ratio will be increased to 9.5 iCollege shares ($1.05 per RedHill share). iCollege believes that this agreement provides RedHill shareholders with a reasonable and fair value.”

What now?

RedHill’s directors note this is only an indicative offer. As such, it warned that there is no binding agreement and no certainty a transaction will ultimately be agreed with iCollege.

In light of this, it recommends shareholders continue to take no action in relation to the offer. In the meantime, the company advised that it will continue to keep shareholders informed of any material developments and is committed to acting in the best interests of all shareholders and to maximising shareholder value.

The post Why the RedHill Education (ASX:RDH) share price is rocketing 18% higher appeared first on The Motley Fool Australia.

Should you invest $1,000 in RedHill right now?

Before you consider RedHill, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and RedHill wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

How much wealth do Aussies have today? It’s never been higher

The Qantas (ASX:QAN) share price is sinking today
Talga (ASX:TLG) share price slides 7% despite positive update
2 high performing ASX lithium shares tipped by top fund manager

Cryptocurrency values plunged this past week. Should you change your investing strategy?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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!