Jannie Mouton Foundation Deal Sparks Bullish Breakout in Curro Share Price, Eyes R15–R20
Curro shares surge as the Jannie Mouton Foundation’s takeover offer clears all conditions, sparking renewed optimism and a potential bullish
Quick overview
- Curro's shares surged following the Jannie Mouton Foundation's takeover offer, which has cleared all conditions.
- The takeover proposal includes a R7.2 billion bid at R13 per share, representing a 60% premium over previous prices.
- Despite muted financial results, investor sentiment has shifted positively, suggesting a potential bullish reversal for Curro.
- The transition to a nonprofit structure aims to enhance access to education for historically disadvantaged persons.
Curro shares surge as the Jannie Mouton Foundation’s takeover offer clears all conditions, sparking renewed optimism and a potential bullish reversal after years of sideways trading.
Curro Shares Rebound Amid Takeover News
Despite relatively muted financial results for the half-year, Curro’s share price has reacted strongly to takeover developments. In late August, shares jumped 50% on initial takeover rumours, and the announcement that all suspensive conditions have been met has triggered another significant rally in December. Investor sentiment is shifting, suggesting a potential reversal of the long-term downtrend and the emergence of a bullish outlook for COH on the JSE.
COHJ Chart Weekly – Breaking Above the Range
Curro’s stock has endured a turbulent decade. From a peak of R50 in 2015, the company spent five years in a bear market, trading mostly between R7.50 and R14. The August takeover announcement reignited optimism, and the Monday confirmation pushed the stock above the top of the historical range, opening the door for potential price targets near R15–R20.
The R7.2 Billion Takeover Proposal
The Jannie Mouton Foundation launched a R7.2 billion bid to acquire Curro, aiming to convert the private school group into a nonprofit public benefit organisation (PBO). The proposal includes an offer price of R13 per share, representing a 60% premium over the pre-announcement close of R8.13. Even with the recent share rally to around R12, the offer remains attractive to existing investors.
The Foundation’s plan seeks to remove profit-driven constraints, allowing Curro to expand into underserved areas and provide greater access to historically disadvantaged persons (HDPs). Shareholders will receive a combination of cash and stakes in Capitec and PSG Financial Services, reflecting the innovative structure of the deal. Once completed, Curro will delist from the JSE, marking the end of its public trading history.
Leadership Commentary
Curro CEO Cobus Loubser welcomed the offer, highlighting its advantages for shareholders and noting the absence of competitive conflicts. He emphasized that the takeover provides immediate financial upside while laying the foundation for long-term sustainable value under a nonprofit structure.
Earnings and Operational Context
The takeover announcement comes after Curro’s half-year 2025 results, which were relatively subdued:
- Revenue: Up 4.7% to R2,709 million
- Learner Numbers: Decreased 1.4% to 71,749 learners
- EBITDA: Stable at R625 million
- Recurring Headline Earnings: Down 1.8% to R224 million
- RHEPS & HEPS: Slight increase of 0.2% to 40.3 cents
- EPS: Fell sharply by 36.1% to 25.7 cents
- Dividend: No interim dividend declared
While revenue growth was modest and EPS fell, the takeover removes near-term execution risk and provides shareholders with a clear path to value capture. Operational challenges, including declining learner numbers and constrained margins, make the well-capitalized buyout particularly appealing.
Market Outlook
The combination of a premium offer, delisting, and nonprofit transition has shifted investor perception, making Curro a focal point on the JSE. Technically, a break above the historical trading range could trigger further upside, with R15–R20 within reach if bullish momentum sustains.
Conclusion: Curro’s shares are rebounding strongly, supported by the unconditional takeover bid, premium offer, and a transition to nonprofit status, offering a potential long-term bullish reversal after years of stagnation.
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