Apollo Education to Explore Strategic Alternatives

For-profit education company Apollo Education Group Inc. said Monday it would explore strategic alternatives, as the government places greater scrutiny on for-profit colleges.

The company said its board was currently in discussions that could lead to a change of control of the company.

Apollo shares, which have fallen 42% in the last three months, jumped 13% to $7.42 on the news in premarket trading.

Apollo, which runs schools including the University of Phoenix, has seen its enrollment numbers pressured as stricter regulation has reduced for-profit colleges' share of U.S. financial aid for students that such schools depend on for most of their revenue. The company has moved to shut some of its locations and trim jobs, while also expanding abroad.

The Wall Street Journal reported in October that the Justice Department and the Department of Education were coordinating on investigations of the University of Phoenix. The Defense Department barred Apollo from recruiting on military bases and placed it on probation for alleged recruiting violations.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

January 11, 2016 08:15 ET (13:15 GMT)

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