University of Phoenix Enrollment Decline; Parent Company Apollo Education Group Net Revenues Fall 19%By Anita V
University of Phoenix parent company, Apollo Education Group, reported a decrease in enrollment, which leads to the 19 percent fall of its net revenues.
After the university laid off 470 workers - most of which are in Arizona, Apollo Education Group urges investors to invest $1.1 billion capital; $9.50 per share. Continuing the work with fewer staffs, the University of Phoenix still apply its 5-year plan of reshaping the school. President Timothy P. Slottow said that he wanted to make sure students have transformative experience with an improved technology and new approach in learning; albeit uncertain future, AZ Central reported.
As for the disappointing loss of money, the Apollo Education Group executives warn the buyout stating that it could lead to risks as some buyers are not affiliated with the Group. The quest of finding buyers, however, has been conducted since last month after Apollo Education reported its fortune fall down and the urgency to find buyers.
The report highlights the timeline of the struggling company's interest that declines from time to time. England's Schroders PLC is against the proposed bid since it is considered undervalue. According to the Bloomberg, Schroders outlined that the price tag of $9.50 per share is not a deal.
Schroders, which owns 13 percent of the group A-listed shares, has voted against the bid from private equity firms. Sending a letter of opposition, manager Andrew Lyddon, wrote to top 10 shareholders regarding the disagreement although he refused to state what is considered a fair value to Apollo Education Group bidding. In his letter, Lyddon encourages the A-listers to oppose the deal and stating that pricing is vital.
The Apollo Education Group receives bid from Najafi Companies and Vistria Group, marking $9 per share due to its declining performance. After an announcement made in January on alternative approaches, the stock fell lower than $7.