On Monday, Apollo Global Management LLC (NYSE:APO) announced that it would buy Apollo Education Group Inc (NASDAQ:APOL) for a whopping sum of $1.1 billion. As soon as the news went public, Powers Taylor LLP and Former SEC Attorney Willie Briscoe called it an unfair practice to shareholders.
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Even though most of the education players in the country are finding it hard to make profits, Apollo Global Management believes that the future of college industry can revive and touch the glory that once belonged to it. Apollo Education owns the famous University of Phoenix chain of schools and runs many other international projects. Buying it will give Apollo Global Management access to the education industry in the best possible way.
At present, Apollo Education is making profits in all the countries where it runs operations, except the United States. All the shareholders of Apollo Education will be paid $9.50 for every share of Apollo Education that they hold, subject to the approval of this transaction by the U.S. Department of Education and University of Phoenix. It’s about 37% higher than company’s share prices at the end of Friday.
A few years ago, there was a time when Apollo Education was worth $14 billion. However, below-standard teaching practices and placement issues have hurt its net worth worse than anyone can imagine. The offer given by Apollo Global Management seems like a win-win situation for Apollo Education management as well as students.
The execution of this deal is harder than it sounds. Reports claim that a former SEC Attorney Willie Briscoe and Power Taylor LLP have accused the company of carrying out an unfair practice to its shareholders. They argue that the value of each share of Apollo Education Group should at least be $10 against the proposed price of $9.50 per share. All the shareholders are requested to contact Patrick Powers at Powers Taylor LLP and Willie Briscoe at the Briscoe Law Firm to register their complaints as soon as possible.