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Sparrow Early Learning acquired by HK investment company
Two firms have advised on the $77 million acquisition of an Australian childcare company by Fullshare.
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Firms: MinterEllison (Fullshare); Colin Biggers & Paisley (Sparrow Early Learning)
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Deal: Acquisition of Sparrow Early Learning by Hong Kong Investment company, Fullshare.
Value: $77 million
Area: M&A
Key players: Sophie Chen led the MinterEllison advisory team, assisted by Michael Scarf, Sophia Bai, Dimitri Kalis, Alessar Elsayed, Stephanie Dellosa, Jason Namkoong, Will Ma, Kathleen Ng, Benjamin Wu, Gordon Williams, Bernadette McCabe, Ashleigh Fehrenbach, Kemsley Brennan, James Stanton, Daniel Bunoza, Kendall Harris, Ashlee Zileski, David Moore, Mellissa Lai and Kelvin Nguyen.
Deal significance:
Overseas investor interest in Australian companies remains strong, as Hong Kong listed investment company Fullshare has acquired 90% interest in Sparrow Early Learning.
Sparrow Early Learning is an early education provider, operating a number of childcare centres in Queensland and Victoria.
“We are delighted to have assisted Fullshare on its acquisition of a 90% interest in Sparrow Early Learning,” Ms Chen said.
“This transaction represents Fullshare’s third investment in Australia and continues to highlight the strong level of investor interest in the Australian early education sector.”
Diligence on detailed regulatory framework in the childcare sector needed to be navigated, including government funding and licencing approvals.
Long-term leases in the deal needed to be approved by the FIRB and adding complexity to the deal, part of the purchase price was offered as shares in the bidder, meaning Hong Kong rules applied.
