Crimson Consulting Australia Pty Ltd (Crimson Australia), a wholly-owned subsidiary of New Zealand-incorporated Crimson Consulting Limited, has lodged its second supplementary bidder’s statement for its off-market takeover offer for Kip McGrath Education Centres Limited (ASX: KME). Kip McGrath Education Centres Limited (ASX: KME) operates an international network of after-school learning centres, providing tutoring services in English and mathematics. The bidder has extended its offer period for KME shares to 7:00 PM (Melbourne time) on 14 October 2026, allowing shareholders to consider outcomes from KME’s Annual General Meeting on 29 September 2026 before deciding on the $0.73 cash per share offer.
Crimson Australia also announced a limited waiver of its “no distributions” condition for proposed KME dividends totalling up to 6.0 cents per share. This aims to facilitate shareholder access to franking credits, though Crimson Australia can reduce offer consideration by any dividend paid prior to the offer becoming unconditional. The bidder intends to waive the 90% minimum acceptance condition upon acquiring a relevant interest of 50.1% or more. Currently, Pie Funds Management Limited (19.25%) and founder Mr. Kip McGrath (11.76%) have accepted the offer. Harvest Lane Asset Management Pty Ltd (19.88%) also intends to accept, collectively representing approximately 50.89% of KME shares.
The supplementary statement reiterates Crimson Australia’s view that its $0.73 cash per share offer is compelling, representing a 62.2% premium to KME’s pre-announcement share price. Crimson Australia disputes the KME Board’s recommendation to reject the offer, arguing the Board’s “operational reset” is unquantified and speculative. The bidder contrasts the certainty and premium of its cash offer with KME’s declining performance and the substantial costs incurred to oppose the bid. A conditional increase to $0.74 cash per share is also proposed if Crimson Australia reaches 90% acceptance for compulsory acquisition.
