University of Phoenix suitors sweeten Apollo offer

• Private investors have increased their offer for the corporate parent to the University of Phoenix
• The offer rises to $10 per share from the original $9.50
• Investors have until Friday to accept the offer

The trio of private investors seeking to buy the corporate parent to the University of Phoenix increased their offer to shareholders Sunday in a bid to win over needed support for the deal.

The revised offer would pay Apollo Education Group investors $10 per share, 50 cents more than originally offered, when the proposed deal was initially disclosed in February. Shareholders have until Friday to vote on the deal, now worth about $1.14 billion.

The increase comes days after Apollo Education officials postponed the original voting deadline, lacking the needed votes for approval.

According to a statement from the company, about 58 percent of shareholders have indicated their support for the deal, though 20 percent of investors still had not voted. Without a majority of shares in favor of the deal, it would be rejected.

The private buyers include Apollo Global Management of New York, the Vistria Group of Chicago and Najafi Companies of Phoenix.

Schroder Investment Management Group and First Pacific Advisors, the two largest investors in Apollo Education, have made clear they don't like the deal, which was publicly announced Feb. 8.

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The buyout offer has generated differing views of its fairness. Glass, Lewis & Co., an independent advisory firm, told Apollo Education that the deal offered "the relative certainty of cash at a premium." Meanwhile, Institutional Shareholder Services reportedly described the offer as "extraordinarily low valuation."

Last week, the company noted that it could sell the university if the takeover failed.

The $10 per share offer would apply to every investor, even those who had already voted in favor of the deal at $9.50. Investors are able to change their earlier votes, a move that could help tip support in favor of the deal.

“We are delighted that the increased purchase price will provide our shareholders with $10.00 per share in cash at closing. The board believes that the increased offer clearly makes this transaction an excellent outcome for shareholders, particularly given the headwinds facing the company,” said Greg Cappelli, Apollo Education's CEO. “We appreciate the support of the many shareholders who have voted in favor of the merger agreement and are confident that others will recognize the value that this revised offer represents.”

Apollo Education's stock closed regular trading on Friday at $7.80 per share, up for the week even though the deal remained in limbo.

Cappelli and other top executives with the company stand to divide about $22.3 million from the sale if it is approved.

Shareholders have filed suit against Apollo Education in Maricopa County Superior Court, claiming the company failed to protect their interests and maximize its value. The company reached a tentative settlement Sunday.