September 23, 2023


education gives you strength

UPDATE 1-Shares of Brazil’s Yduqs and Ser jump in bids for Laureate Education assets

(Adds shares, analyst’s comment, background)

RIO DE JANEIRO, Sept 14 (Reuters) – Shares of Brazilian education company YDUQS Participações S.A. and Ser Educacional SA jumped on Monday after the companies offered competing bids for Laureate Education Inc’s assets in Brazil.

Yduqs, a for-profit education company formerly known as Estacio Participações, is “deepening the understanding of these assets and believes it is able to present a more attractive competing proposal” than Ser, it said in a filing on Monday.

Shares of Yduqs rose more than 6% to 29.60 reais, and Ser jumped more than 13% to 16.74 reais. Laureate’s shares rose 1.35% to $13.47.

Ser Educacional announced on Sunday it had agreed to acquire the assets of Laureate group in Brazil. The U.S.-listed company, which owns and operates campuses in about 10 countries, has 267,000 undergraduate students in Brazil, according to a report by BTG bank.

Ser Educacional’s offer values Laureate’s assets at 3.8 billion reais ($716.86 million), in a cash and stock deal, including 623 million reais in debt.

The offer includes 1.7 billion reais in cash upon closing and 1.5 billion reais with the issuance of new common shares by Ser.

“In light of the challenging momentum for the postsecondary industry (with the face-to-face business shrinking), it was not a cheap deal,” BTG bank analysts Samuel Alves and Yan Cesquim said in a note to clients on Monday about Ser’s offer. ($1 = 5.3009 reais) (Reporting by Sabrina Valle and Paula Laier, Editing by Franklin Paul and Richard Chang)

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