Carlyle, KKR in talks to buy stake in Abril Educação-Valor Economico

(Reuters) – Brazilian education company Abril Educação SA is in talks with private equity funds Carlyle and KKR over the sale of a minority stake in the company for up to 450 million reais ($187.5 million), newspaper Valor Economico said on Wednesday.

Other investors are interested in the 20-25 percent stake being offered, the newspaper reported, without naming all the potential buyers. Abril Educação plans to strike a deal in a few weeks, it added, citing a person with knowledge of the operation.

Spokespeople for Abril Educação, Carlyle and KKR were not immediately available to comment on the report.

Abrilpar Participações Ltda, the Brazilian media and publishing group that controls Abril Educação, hired investment banks Itaú BBA and Grupo BTG Pactual SA to help explore “potential strategic opportunities”, according to a securities filing on Tuesday.

The stake on offer is owned by the Civita family, which currently holds 45.9 percent of Abril Educação stock. The family asked for 45 reais per unit, the newspaper said, 58 percent more than Tuesday’s closing price at 28.50 reais.

Abril Educação units are comprised of one ordinary share and two preferred shares. The units are down 14.7 percent so far this year, underperforming Brazil’s benchmark Bovespa stock index, which is down 5.9 percent.

Brazil’s $11 billion-a-year education industry has grown at double-digit percentage rates in recent years as a tight job market demands a skilled labor force with better technical knowledge, stronger analytical abilities and proficiency in foreign languages.

Related Posts

Leave a Reply

PEHUB Community

Join the 12502 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

Psst! Got any hot tips?

  • This field is for validation purposes and should be left unchanged.

PE HUB News Briefs

RSS Feed Widget

Marketplace

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget