Embark Offers $0.50 Per Share, Valuing Mayfield at $37.7 Million

Embark’s Strategic Move to Expand

Embark Early Education has formally announced its intention to acquire the remaining shares of Mayfield Childcare Limited it does not already own, marking a significant consolidation in the Australian childcare sector. Currently holding just under 20% of Mayfield, Embark is proposing an off-market takeover bid valued at approximately A$37.7 million, with an offer price of A$0.50 per share. Shareholders can choose between a cash payment or shares in Embark, with the share ratio to be determined based on recent trading prices.

Premiums Signal Confidence

The offer price represents a meaningful premium to Mayfield’s recent trading levels – 7.6% above the closing price on 6 November, 18.8% above the one-month volume-weighted average price, and a striking 39.7% premium over the three-month average. This premium underscores Embark's confidence in the value of Mayfield’s assets and the strategic benefits of combining the two businesses.

Creating a Larger, More Resilient Group

Upon successful completion, the merged entity will operate 84 childcare centres, more than doubling Embark’s current footprint of 39 centres. The company emphasizes that the acquisition will not only enhance financial robustness but also improve educational and care outcomes for children, aligning with the core missions of both organisations. This scale could provide operational efficiencies and a stronger platform for future growth in a competitive sector.

Conditions and Next Steps

The offer is subject to several conditions, most notably that Embark and its associates must secure at least 90% ownership of Mayfield shares by the end of the bid period. Additionally, no significant adverse events affecting Mayfield’s business can occur during the offer period. Embark must also meet all ASX regulatory requirements, including those related to the quotation of shares. The Bidder’s Statement is expected to be lodged with regulators by 24 November 2025, with the offer opening shortly thereafter.

Market and Shareholder Implications

For Mayfield shareholders, the offer presents a compelling opportunity to realise value at a premium, with the flexibility of cash or equity participation in the enlarged group. For Embark, the acquisition represents a bold step to consolidate market share and strengthen its position in the childcare education sector. However, the success of the bid will depend on shareholder acceptance and regulatory approvals, factors that investors will watch closely in the coming weeks.