- APM Human Services (ASX:APM) shares are up to $1.27, a rise of some 53 per cent at lunchtime on Monday
- The company is rumoured to be a takeover target for Luxembourg-based CVC
- CVC has previously bought and flipped HR and IT education software players
- The stock has been in decline for years and was slaughtered in January on a UBS downgrade
Update: as of 9.30am AWST, the “rumours” mentioned hereafter have been confirmed by APM.
After getting slaughtered on the back of a UBS downgrade last month, APM Human Services (ASX:APM) shares are showing signs of life.
The company is rumoured to be in takeover talks with Luxembourg-headquartered CVC Capital Partners.
CVC is reported to have not yet made a formal proposal to APM, but, the market is liking the news.
APM shares jumped 53 per cent to $1.27 in lunchtime trades.
The move pushes its YTD returns to 3.88 per cent; one-year returns are still down 47.63 per cent following recent turmoil.
Should the European firm buy APM, it could make things interesting for Australian NDIS and Centrelink recipients.
Both welfare cohorts are handled by APM as a third-party provider to the government.
Perhaps unsurprisingly, APM boasts an all-star C-Suite, as far as the Australian public service landscape is involved.
Former WA Premier Mark McGowan has a stake; as does former WA pollie Ben Wyatt.
Former bank chiefs are also involved, which could be a good relationship network for founder Megan Wynne, who went from billionaire to millionaire status on the share price wipeout in January.
But that wipeout alone isn’t the whole story, and this is probably why CVC has APM on its radar – the stock has been in decline for years.
Listing in late 2021, at $3.33; as of lunchtime on Monday, its shares are worth $1.27.
Before the news of a rumoured CVC takeover hit the street; it traded last week at a paltry 83 cents. Talk about an easy target.
Reportedly, a number of other competitors are roosting by the carrion – but CVC is expected to have the most advanced bid.
As for whether CVC has this kind of company in its skillset, the firm has bought and sold HR software and private education firms before.
That skill set is largely transferable to APM; jobseekers and disability welfare recipients alike are generally “encouraged” to take largely worthless training courses, for a cash bonus for the APM worker.
Shares last traded at $1.27.