Excerpts

In short:

Australian childcare company Embark Education has launched a bid to take over rival early childcare company Mayfield Education.

Industry experts say the company is in no position to expand while its existing services fail to meet national quality standards.

What's next?

Embark is offering 50c per share to Mayfield shareholders, who have been advised by Mayfield to take no action.

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Data from childcare authority ACECQA shows 26 per cent of Embark's long-day care centres failed national quality standards — almost three times the for-profit industry average of 9 per cent.

"I think it's extremely concerning that a company with such a bad record … is planning to expand dramatically," Andrew Scott, an emeritus professor at Deakin University, said.

Takeover bid flagged in October

Embark, formerly known as Evolve Early Learning, made its takeover intentions clear in October when it purchased nearly 20 per cent of Mayfield's shares.

Stock market filings indicate the shares were bought from Darren Misquitta, the head of embattled childcare empire Genius Education.

Embark is offering 50c per share to Mayfield shareholders, who have been advised by Mayfield to take no action over the proposal yet.

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