King & Wood Mallesons has acted on Affinity Education Group Limited’s pro-rata accelerated renounceable entitlement offer (AREO) of new ordinary shares to existing shareholders, advising the joint lead managers CBA Equities Limited and Canaccord Genuity (Australia) Limited.

The offer consists of an accelerated institutional entitlement offer and a retail entitlement offer to raise approximately $75 million.

The proceeds of the offer will be used to fund the proposed acquisition by Affinity of 9 premium child care centres and to provide Affinity with additional balance sheet capacity.

The King & Wood Mallesons team was led by M&A partner David Eliakim, who was supported by senior associate Hoda Nahlous and solicitor Matthew Cowcher.

Commenting on the deal, David Eliakim said, “We are delighted to have acted for the joint lead managers on this significant capital raising, as Affinity continues to pursue its acquisition led growth strategy”.

King & Wood Mallesons also advised on Affinity’s $75 million AREO in 2014.