In a bid to muster more support for the deal, the corporate parent to the University of Phoenix is offering shareholders an extra week to cast their votes on a prospective $1.1 billion buyout.
According to reports on Phoenix Business Journal, very few shareholders actually voted in last month's shareholder vote of the proposed $1.1 billion procurement of Apollo Education Group Inc.
As a result, the shareholder vote was postponed to May 6 in order to give the apical shareholders an opportunity to vote on whether a consortium of investors should acquire Apollo Education Group Inc. (Nasdaq: APOL), which not only manages University of Phoenix but also runs other schools across the globe. Apollo did not alter the offer of $9.50 per share to investors.
Apollo recently divulged that almost 58 percent of the Class A shares voted in approval of the transaction.
However, not all investors had voted. As a result, the Phoenix-based company was left short of a majority of shares represented. Without that, the deal would come to naught. The company did not disclose what share of stock holders remained neutral, AZ Central reported.
As the voting deadline drew near, the company has alternatively conferred upsetting financial records and also made investors aware of the fact that carrying on as a publicly traded company could eventually compel them to sell the flagship university.
Expressing his gratitude to shareholders who voted in favor of the transaction, Apollo CEO Greg Cappelli said:
"The board performed a thorough review of strategic alternatives and determined that the transaction is in the best interest of shareholders and continues to strongly support our efforts to transform the University of Phoenix, grow our international operations, drive efficiency throughout the organization, and most importantly, provide students with a high quality education."
The Apollo board encourages shareholders to vote for the proposed deal, in which a consortium of investors, including The Vistria Group LLC, funds affiliated with Apollo Global Management LLC and the Najafi Cos., would acquire Apollo Education for a whopping $1.1 billion.
In case, the deal doesn't work out, Apollo may opt to sell University of Phoenix, anyway.
Shareholders can alternatively send in their proxy either electronically or by mail if they do not opt to personally vote at the special meeting at the Apollo headquarter.
It will have the same impact as a vote against the merger.
