Slide 1: Offer to acquire Redhill Education
(ASX:ICT) Offer to acquire Redhill Education A SYNERGISTIC APPROACH TO DRIVING GROWTH AND CREATING SHAREHOLDER VALUE
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by iCollege Limited (ICT) in relation to its proposed off-market takeover bid to acquire all of the ordinary shares in RedHill Education Limited (RedHill), in accordance with Chapter 6 of the Corporations Act 2001 (Cth) (Corporations Act). This presenta
Slide 3: Directors unanimously recommend shareholders ACCEPT this offer
The Directors of iCollege unanimously recommend that Redhill Education Shareholders ACCEPT this offer (ASX:ICT)
Slide 4: Transaction Overview
Transaction Overview TRANSACTION DETAILS KEY HIGHLIGHTS iCollege Limited (ICT) Limited is proposing a takeover offer Creation of a champion education portfolio by combining (the Offer) to acquire 100% of RedHill Education Ltd two Australian industry leaders (RedHill or RDH) Integration of complement
Slide 5: Offer Premium Analysis
Offer Premium Analysis RDH Implied offer Price Per Share Offer Price 29.4% 45.6% 54.7% 90.4% 65.0% 16.4% 12.8% Premium $0.99 Implied Offer Price: $0.99 per share $1.00 $0.90 Implied Equity Value $50.3m $0.80 $0.70 $0.85 $0.855 $0.77 $0.60 $0.68 % of Shares Acquired $0.64 $0.60 $0.50 100% $0.40 $0.52
Slide 6: Company Overview
Company Overview iCollege Redhill Education ELICOS, VET, Higher education and international Market segment ELICOS, VET and English language testing student recruitment Student sector Domestic and International Domestic and International Revenue split 46% international students and 54% domestic stude
Slide 7: Reasons for REDHILL Shareholders to Accept
Reasons for REDHILL Shareholders to Accept The Offer represents an attractive premium to all of the iCollege employs a highly regarded and experienced board and relevant metrics, including the competing UCW offer and the management team that has a demonstrated track record of undisturbed share price
Slide 8: Significant Cost Synergies
Significant Cost Immediate and ongoing realisation of targeted cost synergies Synergies for the combined group Cost Category Description of Key Costs Savings Time Frame • Student acquisition costs (agent commissions) Cost of services $1.0m 3-24 months • Teaching resource costs • Public company expens
Slide 9: Expansion of Student Channels
Expansion of Creates a leading, diversified portfolio of education Student Channels businesses, positioned to invest, innovate and compete in a rapidly growing marketplace • Approximately, 90% of Redhill’s ICT Campuses domestic revenue is derived from Brisbane 2 NSW and VIC. Comparably, Perth 2 iColl
Slide 10: Complementary Portfolios
Complementary Portfolios Pro Forma Group Commentary Revenue by Domicile1 15% 20% Domestic Domestic Highly complementary student b a s e s . Re d H i l l h a s a n 8 5 % reliance on international 50% In te rn ati o na l Domestic 50% students where ICT has managed In te rn ati o na l In te rn ati o na
Slide 11: Enhanced Product Offering
Enhanced The broader course offering provided by the combined entity will allow for greater student participation and retention across Product Offering the diverse brands. Extensive Product Offering to Prospective Students Combined Group offering increases significantly with ICT experiencing sustaine
Slide 12: Complementary Course Mix and Funding Sources
Complementary Course Mix and Funding Sources FUNDING SOURCE Current Government Spend* • Subsidised state • FEE Help government contracts $6.2 billion International • Commonwealth support places • JobTrainer $1 billion Education Market – Fee for • VET Student Loans- $275m ^ • Infection control fund $
Slide 13: Leading Australian Education Portfolio
Leading Australian Combines two Australian industry leaders, creating a champion Education provider with a national footprint Education Portfolio across a broad suite of well regarded brands MARKET CAPITALISATION • Due to iCollege’s larger average daily trading volume over the last 12 $118.6M months
Slide 14: A Compelling Transaction for Both Sets of Shareholders
A Compelling Transaction for Both Sets of Shareholders The offer is a premium to a range of trading measure including the recent competing offer Delivers immediate scale, increased revenue, profitability and balance sheet strength Greatly expanded course offerings under 12 quality and recognised bran
Slide 15: Thank You
THANK YOU (ASX:ICT)