Monday 01 May 2017 01:20 PM
UPDATE: Intueri shares fall 52% to 1 cent after company says nothing for shareholders after bank repaid
By Jonathan Underhill
May 1 (BusinessDesk) - (Updates to recast with drop in shares)
Intueri Education Group shares fell 52 percent to 1 cent, valuing the company at $1 million after it said the level of
bids for its remaining colleges mean it wouldn't have a sustainable business after repaying debt and there'd be nothing
to return to shareholders.
The stock has fallen from $2.35 in Intueri's initial public offering in 2014, when it was taken public by
Australia-based Arowana International. The IPO delivered $102 million to Arowana for selling its stake down to 24.9
percent and paid the $60 million cost of acquiring the now-defunct Quantum Education Group.
Intueri hired High St Capital Partners for advice on options for the New Zealand operations including the sale of assets
after being forced to close its Australian institutions when they failed to gain renewed registrations across the
Tasman. Those remaining assets are now being liquidated. Today it said indicative offers for its remaining New Zealand
colleges would not generate enough funds to repay all of $70.7 million in debt with ANZ Bank New Zealand.
As a result, the company would have "insufficient residual assets to operate a sustainable business or make any return
to shareholders" if a sale eventuates, it said in a statement.
The company said it retains the support of its bank under a standstill agreement reached after it breached a lending
covenant. The standstill is to allow Intueri to complete a strategic review. "Intueri’s New Zealand businesses continue
to be able to meet obligations currently being incurred," the company said in a statement.
In February, Intueri said it had conditionally agreed to sell the NZ School of Outdoor Studies, which trades as the NZ
School of Commercial Diver Training and is the only such school in New Zealand, with settlement expected by the end of
March. However, today it said the sale hasn't been finalised despite settlement being extended to the end of April "and
Intueri is now exploring options with other parties to divest this college. In the meantime, the Dive School will
maintain normal operations under Intueri management."
"Intueri again recommends that persons considering trading in Intueri shares ensure that they understand the
implications of this announcement and seek professional advice prior to doing so," it said.
(BusinessDesk)