Announcement • Aug 01
Crimson Consulting Australia Pty Ltd offered to acquire Kip McGrath Education Centres Limited (ASX:KME) from Pie Funds Management Ltd, Kip McGrath, Regal Partners Funds Management Pty Limited, HD Capital Partners Pty Limited, DMX Asset Management Limited, and others for AUD 38.6 million. Crimson Consulting Australia Pty Ltd offered to acquire Kip McGrath Education Centres Limited (ASX:KME) from Pie Funds Management Ltd, Kip McGrath, Regal Partners Funds Management Pty Limited, HD Capital Partners Pty Limited, DMX Asset Management Limited, and others for AUD 38.6 million on July 30, 2026. The consideration under the offer of AUD 0.73 for each Kip McGrath Share represents a premium of 62.2% to the Kip McGrath closing price as at July 29, 2026 (the last trading day prior to the announcement date), being AUD 0.45 per share. The cash consideration payable under the offer will be obtained by Crimson Australia from internal cash reserves. At the conclusion of the compulsory acquisition process, Crimson Australia will request Kip McGrath to be removed from the official list of the ASX.
Crimson Australia will replace all members of Kip McGrath’s Board with its own nominees. Crimson Australia’s current intention is to continue the employment of the majority of Kip McGrath’s employees. Kip McGrath's board has advised shareholders to take no action.
The transaction is subject to minimum tender and approval of offer by target shareholders. The transaction has been approved by Crimson Board.
KHQ Lawyers acted as legal advisor for Crimson Consulting Australia Pty Ltd. New Risk • Jul 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 18% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (18% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (AU$36.0m market cap, or US$25.1m). Recent Insider Transactions • Jul 01
Non-Executive Chairman recently bought AU$70k worth of stock On the 29th of June, Damian Banks bought around 150k shares on-market at roughly AU$0.46 per share. This transaction amounted to 8.1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Damian has been a buyer over the last 12 months, purchasing a net total of AU$666k worth in shares. 
