A consortium led by Apollo Global Management LLC (NYSE: APO) has increased its offer to buy Apollo Education Group Inc. (Nasdaq: APOL), owner of the University of Phoenix, to $10.00 a share, or $1.14 billion.
Apollo Global and other investors including The Vistria Group LLC had offered to buy the Arizona-based education company in February for about $9.50 per share. The revised terms are the consortium’s “best and final offer,” Apollo Education said in a press release Sunday.
Investors including Alberta Investment Management Corp. and Schroders Plc rallied to halt the deal on the grounds that the earlier offer undervalued the company. Those investors had urged shareholders to reject the purchase in a vote at a special meeting that was scheduled for last week. The meeting was adjourned to May 6, when investors will vote on the revised terms.
The revised offer is a 52 percent premium over the Jan. 8 closing price, the last trading day before the company’s board announced it would explore strategic alternatives on Jan. 11.
A representative for Apollo Global did not respond to requests for comment Sunday outside of regular business hours. A representative for Apollo Education declined to comment.
Apollo Education’s board sent a letter to investors last week stating that it would consider selling the company’s struggling University of Phoenix arm if investors rejected its deal with the buyout consortium.