Ronald J. Hansen

The Republic | azcentral.com

The owners of the University of Phoenix say the school could be sold anyway if a private deal fails

The Apollo Education Group made clear that its weakening finances require drastic action

Shareholders have until Thursday to vote on the pending sale offer

The University of Phoenix could change hands even if the parent company's shareholders reject a deal to sell it to private interests this week.

The Apollo Education Group noted to investors Tuesday that it would consider selling the company's flagship property if the proposed sale fails.

A short filing with the Securities and Exchange Commission underscores the company's dreary finances and its efforts to convince its shareholders to accept a $1.1 billion offer from Apollo Global Management, the Vistria Group and Najafi Companies.

Shareholders have until Thursday to weigh in on the deal, which would pay them $9.50 per share. Apollo Education's stock finished regular trading at $7.34, down 9 cents on Tuesday. After stabilizing at more than $8 per share after the sale was publicly announced, the stock has fallen back in recent weeks as the deal's deadline approached.

MORE: What you need to know about the University of Phoenix sale

The Phoenix-based company said it wanted to answer what its plans are if the sale is rejected.

"If the Company’s shareholders decide not to approve this transaction, the Company could face serious consequences, including a further decline in share price that could have an impact on the Company’s access to liquidity," Apollo Education wrote. "For that reason, if this transaction is not completed, the Board intends to review other strategic alternatives for the Company, including a sale of the University of Phoenix."

Unlike the proposed sale of the company as a whole, a sale of the university would not require shareholder approval, Apollo Education said.

The company owns other schools, like the far-smaller Western International University. In recent years, the company's international unit has grown as Apollo Education has purchased similar for-profit operations in places like Germany and Australia. That international unit is seen as providing a new pipeline of revenues, but remains much smaller than its core business with the University of Phoenix.

For-profit education in the U.S. has tumbled over the past six years, in part due to increased government scrutiny of how taxpayer-backed student loans were used and as traditional universities have entered online education.

Apollo Education has seen its stock market value wither from more than $14 billion to less than $800 million today.

Under the proposed deal, Apollo Education's executives would stand to collect about $22 million from the sale, the company reported.

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