APM Human Services International: Deal Below Fair Value Estimate but Likely to Pass

Following confirmatory due diligence, Ancora BidCo, an entity controlled by Madison Dearborn Partners, has entered into an agreement to acquire no-moat APM Human Services International for AUD 1.45 per share. While at a 28% discount to our AUD 2.00 stand-alone assessment of APM’s intrinsic value, which is unchanged, we now assume the takeover will be successful in our base case and decrease our fair value estimate by 28% to AUD 1.45.