U.S.-based Laureate Education Inc., which owns over 150 campuses across 10 countries, is reportedly planning to sell its Brazilian operations to Ser Educacional S.A. Sources with relevant information stated that the transaction is worth USD 724 million (R$ 3.862billion).
It is to be noted that earlier this year, Laureate Education had planned to divest its operations across five countries including United States, Brazil, Chile, New Zealand, and Australia. In fact, the American educational corporation owns over 11 higher education institutions in Brazil, which collectively enroll over 267,000 students in postgraduate, undergraduate, and technical programs.
Evidently, the recent development comes along the heels of Laureate’s announcement of divesting Minnesota-based Walden University as well as its Chilean operations. As per the agreement, Laureate will obtain over 101,1381369 shares, approximately 44% stocks of Ser Educacional, apart from receiving R$1.70 billion in cash.
Meanwhile, the Brazilian educational company will offer to list ADS (American Depositary Shares) on United States securities exchange. However, the settlement is subject to certain closing conditions, such as completion of Ser Educacional’s ADS listing and regulatory approval, sources claimed.
Reportedly, the agreement also includes a 30-day go shop period, during which Laureate and its advisors are entitled to negotiate for alternative acquisition proposals. Ser Educacional will retain the right to offer a superior proposal as well as receive a termination fee if Laureate dismisses the current proposal. The overall transaction is planned to close by the end of the year 2021.
Eilif Serck-Hanssen, President and CEO at Laureate was reported saying that the transaction is a result of the company’s efforts of exploring regional and strategic alternatives.
The exclusive financial advisor to Laureate Education is Goldman Sachs & Co. LLC, while the legal advisors are Jones Day, Simpson tacher & Bartlett LLP, Demarest Advogados and Veirano Advogados.
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