Curro’s Turning Point? R7.2B Bid Ignites Optimism After Soft H1 as JSE: COH Eyes Breakout
Investor sentiment around Curro shifted sharply this week as a major buyout proposal lifted the stock more than 50% in a single session...
Quick overview
- Investor sentiment around Curro surged this week with a buyout proposal, causing the stock to rise over 50% despite lackluster financial results.
- The Jannie Mouton Foundation has proposed a R7.2 billion bid to acquire Curro and convert it into a nonprofit organization, offering R13 per share.
- Curro's recent financial results showed modest revenue growth but highlighted operational challenges, including a significant drop in overall EPS.
- The proposed buyout is seen as a favorable opportunity for shareholders, potentially leading to sustainable long-term value creation.
Investor sentiment around Curro shifted sharply this week as a major buyout proposal lifted the stock more than 50% in a single session, despite otherwise muted financial results.
Share Price History and Market Context
Curro’s share price has endured a turbulent decade. After peaking around R50 in 2015, the stock entered a prolonged five-year bear market, trading mostly between R7.50 and R14. Yesterday’s announcement of a takeover bid has reignited optimism, raising expectations for a potential bullish breakout after years of sideways trading.
COHJ Chart Daily – Likely to See A Break Above the Range This Time
The R7.2 Billion Nonprofit Proposal
The Jannie Mouton Foundation has launched a R7.2 billion bid to acquire Curro, delist it, and convert the private school group into a nonprofit organization. The Foundation argues that such a move would remove profit-driven constraints, enabling Curro to expand into areas where building schools might not otherwise be financially viable.
The proposed scheme includes an offer price of R13 per share, representing a 60% premium over Curro’s pre-announcement close of R8.13. Even after the post-announcement rally, with shares trading near R12, the offer remains attractive to existing investors.
Leadership Commentary
Curro CEO Cobus Loubser welcomed the bid, noting that the proposal appears highly favorable to shareholders and comes from a non-competitor, reducing potential conflicts of interest. He highlighted that the deal not only secures immediate financial upside but also sets the stage for sustainable, long-term value creation under a nonprofit framework.
Earnings Backdrop
The timing of the offer follows Curro’s half-year 2025 results, which showed modest revenue growth but highlighted operational challenges. Recurring headline earnings per share saw a slight uptick, yet overall EPS dropped sharply, while learner numbers edged lower. The decision to withhold an interim dividend reflected a cautious capital strategy, further underscoring the appeal of a well-backed buyout.
Curro Results for Six Months Ended 30 June 2025
Salient Features
- Revenue: Up 4.7% to R2 709 million (June 2024: R2 588 million).
- Learner Numbers: Weighted average decreased by 1.4% to 71 749 learners (June 2024: 72 758).
- EBITDA: Stable at R625 million, unchanged from prior period.
- Recurring Headline Earnings: Down 1.8% to R224 million (June 2024: R228 million).
- RHEPS: Slight increase of 0.2% to 40.3 cents (June 2024: 40.2 cents).
- HEPS: Also rose by 0.2% to 40.3 cents (June 2024: 40.2 cents).
- EPS: Fell sharply by 36.1% to 25.7 cents (June 2024: 40.2 cents).
- Dividend: No interim dividend declared, consistent with policy of paying 20% of recurring headline earnings annually.
Conclusion: The Jannie Mouton Foundation’s offer has transformed Curro’s outlook almost overnight. What was a static earnings season has now turned into a potential turning point for the education group, with investors eyeing both immediate gains and the longer-term benefits of a nonprofit future.
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