Vasta Platform Limited (VSTA) stock went down by 6.75% in the after-hours, following its gain of 52.49% in the prior market session on Friday.
In regular trading, the stock gained $1.58, closing the session $4.59 with over 9.3 million shares exchanging. Following the gain, VSTA stock lost $0.31 to profit-booking, going down to $4.28 in the after hours. Hence, the stock saw declines as profit takers stepped in following big gains during the regular session.
VSTA’s 18.58 million outstanding shares are currently trading at a market capitalization of $381.02 million.
VSTA’s Recent Hike
On December 10, the leading, high-growth education company’s stock reached a high of $5.42 after eighty-five days. This marked a good profit booking opportunity for some investors. Hence, the stock entered market corrections in the after hours. Apparently, no particular news is responsible for the hike in the stock on Friday, while the company did announce a materiality assessment recently.
Friday’s hike caused the stock’s five-day gain to reach over 87.3% and its one-month gains 41.23%. Moreover, the stock has subtracted a value of 12.74% in the past three months and 68.34% year to date.
ESG Materiality Assessment
On December 08, VSTA announced conducting a materiality assessment related to ESG (Environmental, Social, Governance) matters. Further, the company requested its shareholders and the general investment community to contribute to the assessment. In addition, the company also shared a link to a confidential survey for the assessment.
VSTA’s Acquisition of Editora Eleva
On October 29, VSTA’s subsidiary completed the acquisition of Editora de Gouges S.A. Somos Sistemas de Ensino S.A. which is a subsidiary of VSTA acquired Editora Eleva S.A. The Editora Eleva has all rights and assets of the Eleva group, related to the K-12 education platform.
As per the agreement, the base purchase price amount in 2021, would be R$ 580 million, which is to be calculated in 2022. Moreover, an estimated net cash adjustment of R$ 32 million approx. is to be added to the base purchase price. Further, the transaction’s payment will take place over the next five years in instalments. The company paid the first instalment of R$ 160 million on the date of the announcement.
In addition, the company will provide courseware to Eleva in the 10-year commercial agreement. Further, the companies will also form a commercial partnership with Saber Serviços Educacionais S.A for educational tools development.
