3P Learning Share Price Continues Climb on Acquisition News (ASX:3PL)

The share price of 3P Learning Ltd [ASX:3PL] is up 24.20% at the time of writing, to trade at $1.36.

With new contracts in place and an enhanced suite of learning products, it appears that it is starting to reap the rewards of a restructure.

Which is underlined by today’s move by IXL Australia to acquire it.

ASX 3PL Share Price Chart - 3P Learning

Source: Optuma

What’s happening at 3P Learning?

3P Learning specialises in online education.

The need for these services has been heightened and the company reported an improved retention rate for FY20.

The company also recently announced a new US$10 million partnership to deliver Mathletics licences and professional services in the Middle East in FY21.

With the company making a push into the US, IXL Australia has moved to acquire 3PL.

Under the terms of the agreement:

3P Learning Limited has entered into a Scheme Implementation Agreement (“SIA”) with IXL Learning, under which IXL Australia will acquire 100% of the share capital of 3PL by way of a court-approved Scheme of Arrangement, in an all-cash offer.

The Scheme Consideration of $1.35 per share represents a premium of 23.3% to the last closing share price of $1.10 (13-Aug-2020).

Where to from here for 3P Learning?

The 3PL share price took a while to get going following the March market lows.

Looking at the chart, the price was in a long-term downtrend from a peak price of $1.76 in February 2019.

From the low in March 2020 the 3PL share price rose over 126% to where it is now.

ASX 3PL Share Price Chart 2 - 3P Learning

Source: Optuma

The rise of the 3PL share price is an extension of the unique market environment we are in.

Companies that can capitalise on trends emerging from the pandemic are likely to do well, even when the overall sentiment is bearish.

Regards,

Carl Wittkopp,
For Money Morning

PS: Four well-positioned small-cap stocks: These innovative Aussie companies are well-placed to capitalise on post-lockdown mega-trends. Click here to learn more.

 

 


Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

Money Morning Australia