OpenLearning has commenced a strategic review of its business after being approached by interested parties, appointing IBIS Capital to provide advice on “maximising shareholder value through this process”.

The company has indicated there are no assurances that the company will pursue a transaction.

The statement includes a quote from CEO & Managing Director Adam Brimo where he  said: “OpenLearning is one of the largest and most recognised lifelong learning platforms in Australia and Southeast Asia, enabling over 250 education providers to deliver high quality courses to over 3 million learners. OpenLearning is well positioned to continue delivering organic growth and this process will explore all options for achieving sustainable growth and supporting our clients while maximising shareholder value.”

Interestingly, at least from my perspective, that section on shareholder value is hard to read. This one has been tough to continue to follow.

A friend of mine is in learning development – in an internal role – and he has questioned my faith in this one. Will be watching with interest to see what, if any, changes are made.

Rights issue originally supposed to close 24 December (what a shocker of a close date with most people having other things on their mind that time of the year) has been extended until 14 January.

Like all of these things if you don't participate you suffer dilution.

Recent insto stakes have given me some faith, however, this one remains on a tight leash and is still one of my lower conviction holdings. While this one is a relatively small holding for me, albeit one that has been cut in half, I will be participating.

Recent investor updates as some other straws have pointed out are showing good growth, there is also a reasonable level of cash holding too.

Couple of things that make me wonder. Sprouting the size of the market in billions when your revenues are in single digit millions. This either says you have massive scope to grow or says you are a mere minnow and likely to be swallowed. Either way, I think it means there needs to be expansion soon.

The other is CS101.com offering. It looks like a solution seeking a problem. I haven’t had a chance to check how much they invested in this or the projections. One thing I do know after looking at the site for a few minutes is this was not inexpensive.