The planned sale of British private school network Cognita is faltering, posing a potential blow to Belgian holding Sofina.
The sale of Cognita, one of the world’s largest private school groups, is at risk of collapse, according to the Financial Times. Several investment giants, including Blackstone, Permira, Cinven and CVC, made multibillion-pound offers earlier this summer, but talks have stalled.
At issue are widening gaps between asking and offering prices in today’s difficult M&A climate, as well as new tax measures in the UK. The Labour government recently introduced a 20% VAT levy on school fees, creating uncertainty over affordability and profitability in the sector. Cognita, which owns 38 schools in Britain and 107 worldwide, is directly affected.
For Sofina, the Brussels-listed investment group of the Boël family, the setback could be significant. Cognita is its second-largest portfolio holding after ByteDance, the Chinese parent of TikTok. Sofina owns 13.4% of Cognita, having invested £270 million in 2019 alongside US-based BDT Capital. A successful sale would have allowed both to exit, while majority shareholder Jacobs Holding planned to reinvest.
Education has long been a strategic pillar for Sofina, representing around 12% of its portfolio value. Besides Cognita, the group holds stakes in Spanish online education provider Proeduca, India’s K12 Techno Services, and previously in Byju’s.
