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Kip McGrath Education Centres Limited ASX:KME

1 opened or increased0 held2 reduced or exitedlatest position by manager, past 12 months90 days: 1 increased, 2 reduced. 5 managers in total.

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20252026

28 Feb 2024 to today

Commentary Showing 2 of 19

DateManagerActionSummary

30 Sep 2026DMX Asset ManagementExitDMX Asset Management sold its investment in Kip McGrath Education Centres (ASX:KME) into the revised takeover bid from Crimson Education, which was lifted from 73c to 75c and endorsed by the board. DMX notes a robust process was followed in searching for a superior offer, but it was underwhelmed by the price. Crimson secured a majority stake after merger arbitrage specialist Harvest Lane and other key investors agreed to sell. DMX considered remaining a minority shareholder, but cited board support for the bid, minority shareholder uncertainty and opportunity cost in deciding to exit. The sale frees around 4% of capital across its funds. DMX describes a disappointing long-term result following a failed North American expansion, despite a recent turnaround under new management.

Monthly Report, price recorded $0.74

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31 Aug 2026DMX Asset ManagementIncreasedDMX Asset Management increased its holding in Kip McGrath Education Centres, adding to the position after the company, previously downgraded, delivered a respectable full-year result and repositioned itself following a strategic reset and exit from its US operations. The manager notes the board rejected an unsolicited takeover offer from Crimson Education, while merger arbitrage specialist Harvest Lane acquired a roughly 19% stake at prices up to the offer level. The manager views the shares as attractively priced as an independent company given the progress made, growth potential and significant free cash flow, seeing upside for a potential acquirer from removing public-company overhead or capturing operational synergies, and believes there is a good chance of a higher bid emerging, with continued independence also considered a perfectly acceptable outcome.

Monthly Report, price recorded $0.73

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17 more comments on KMEPro shows every comment, with a link to each source document.

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First mention by manager

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Price at first mentionThe share price recorded when each of 5 managers first commented on KME.

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Articles

About Kip McGrath Education Centres Limited

Consumer Discretionary, Diversified Consumer Services

Kip McGrath Education Centres (ASX:KME), the tutoring franchisor, became a takeover target that divided small-cap holders. In August 2026, DMX Asset Management added to its holding after an unsolicited takeover offer from Crimson Education, noting Kip McGrath delivered a respectable full-year result after earlier downgrading. Merewether Capital exited, explaining that the hostile 73 cent bid had been followed by a financial report showing a weaker balance sheet. DMX had previously reported the shares rose 33% on the offer. Kip McGrath operates in the Consumer Discretionary sector within the Diversified Consumer Services industry, and Thesis Tracker has captured 16 comments from 5 fund managers, including DMX Asset Management and Merewether Capital. Kip McGrath provides face-to-face and online tutoring in literacy and numeracy through a global franchise network across Australia, New Zealand, the UK and other markets.

Market cap: $36m
Price to earnings: 17.8x
Return on equity: 12.9%
Dividend yield: 2.8%
Price to book: 2.22x
Net margin: 8.4%
52-week range: $0.41 to $0.76

Company figures as of 15 Oct 2026. For information only.

Questions

Who is investing in Kip McGrath Education Centres Limited (ASX:KME)?

Fund managers including Mereweather Capital, DMX Asset Management, Oracle Advisory Group, HD Capital Partners and Merewether Capital have invested in Kip McGrath Education Centres Limited (ASX:KME).

What opportunities or catalysts do fund managers highlight for Kip McGrath Education Centres Limited?

DMX highlights the unsolicited takeover offer from Crimson Education at 73 cents, a significant premium, and a respectable full-year result, adding to its holding in anticipation of potential value realisation.

What are the key risks to the Kip McGrath Education Centres Limited investment thesis, according to fund managers?

Merewether exited after the latest financial report showed balance sheet weakness alongside the hostile bid, and DMX noted an earlier earnings downgrade as several minor factors went against the company.

What does Kip McGrath Education Centres Limited (ASX:KME) do?

Kip McGrath Education Centres Limited (KME) provides educational services through a global franchise model. The company specializes in face-to-face tuition and direct-to-home educational products. Operating across Australia, the United Kingdom, and New Zealand, KME manages the sale of franchises and provides ongoing operational support to its network. Its business structure focuses on delivering structured learning solutions to students in international markets.

General information only. Thesis Tracker reports what named fund managers have published about ASX companies. It does not take into account your objectives, financial situation or needs, and is not financial product advice or a recommendation to buy, sell or hold any security.

11,356 comments from 164 managers on 761 companies, snapshot 15 Oct 2026.

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