Navitas Got Destroyed On The ASX Today After It Lost A Big Contract

Photo: Getty/Oli Scarff

Navitas lost more than $700 million in market capitalisation today when it announced an end to its long relationship with Sydney’s Macquarie University.

Stocks in the global education provider fell more than 30% to $4.84.

Michael McCarthy, chief market strategist at CMC Markets, said: “Given that Navitas operates across 57 campuses and 27 countries, this may be an overreaction, but is also an accurate reflection of a “sell first, ask questions later” mentality in today’s trading.”

Navitas runs the Sydney Institute of Business and Technology which gives students a pathway to study at Macquarie University.

The company announced it would move the institute to the Sydney CBD after an 18-year partnership with Macquarie University.

The agreement with Macquarie University will continue to 2016 when Macquarie will start its own university pathway college.

Earnings will be impacted in the second half of 2016 and the first half of 2017. Navitas will take a one-off, non-cash goodwill impairment charge of $40 million.

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