Majority Capital offering a big premium for G8 Education

Melbourne investment manager Majority Capital Partners has proposed acquiring childcare operator G8 Education for 26 cents a share, valuing the company at $196.7 million. G8’s board has given the non-binding offer preliminary support and granted up to six weeks for due diligence. The proposed price represents a 160 per cent premium to the previous market valuation, following a sharp decline in G8’s earnings and share price.