Update on acquisition proposal and business operations

APM Human Services International Limited (ASX: $APM) has received a non-binding indicative proposal from Madison Dearborn Partners (MDP) to acquire all of the shares in APM which it does not already hold for $1.40 cash per share. The proposal includes a rollover election for APM shareholders to receive all or part of the consideration in unlisted shares in the acquisition entity. APM also provided an update on its operations, highlighting the challenges in the Employment Services business and the investments made in the Australian Health business.

Executive commentary on the acquisition proposal and business operations

The Lead Independent Director of APM, Mr Nev Power, stated that the Independent Board Committee is focused on achieving an outcome that is fair and reasonable and in the best interests of all shareholders. He noted that the offered price per share under the MDP Proposal is disappointing and that the proposal does not require exclusivity, allowing the Company to engage with other potential acquirers. The Company intends to engage with MDP and any other interested parties to determine whether an appropriate proposal can be put to shareholders, considering other alternatives including remaining listed and pursuing growth opportunities.

Summary of acquisition proposal and business outlook

APM has received a non-binding indicative proposal from Madison Dearborn Partners to acquire the remaining shares in the Company for $1.40 cash per share. The Company's operations face challenges in the Employment Services business due to extended low levels of unemployment, while investments in the Australian Health business are expected to yield benefits in FY25. APM anticipates FY24 underlying EBITDA and underlying NPATA to be in the range of $280 million to $290 million and $95 million to $105 million respectively. Looking forward, APM expects significant incremental earnings growth in FY25 through announced contract awards and corporate initiatives, supporting underserved populations within the employment services, health, disability, and aged care sectors. The Company is also committed to efficiency initiatives and debt refinance to support its operating and support structures.