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Canada Pension Plan Investment Board and funds affiliated with Baring Private Equity Asia have agreed to buy Nord Anglia Education, a Hong Kong-based operator of international schools, for $4.3bn, including debt.
Under the terms of the deal, Bach Finance, which is owned by the consortium, is offering $32.50 cash per Nord Anglia share – an 18 per cent premium to the stock’s closing share price on Monday.
The transaction will be financed through a combination of cash contributed by CPPIB and Baring and third party financing underwritten by a group of financial institutions.
The agreement provides for a so-called go-shop period, in which a special committee of independent directors will solicit and potentially negotiate with third parties that offer alternative proposals.