G8 suspends share trading after shares soar more than 20pc

Shares in child care giant G8 Education soared 28 per cent today prior to the Federal Government’s announcement the service would be “for free” for parents of up to 1.3 million children.

SHARES in child care giant G8 Education soared 28 per cent today prior to the Federal Government’s announcement the service would be “for free” for parents of up to 1.3 million children.

The surge prompted the company to announce a trading halt pending an announcement on the forecast impact of the government’s latest announcement on its operations.

G8 shares have now more than doubled after trading at a low of 47.5 cents last month.

The trading halt comes after G8, which has more than 400 childcare centres in Australia, earlier this week said the 6 cents per share fully-franked final divided payment would be moved from April 6 to October 30.

G8 Education managing director Gary Carroll. Photo: Scott Powick

G8 said this was because of the rapidly evolving situation due to COVID-19.

“As part of its cash management planning, the Board considers this a prudent step to maintain liquidity and protect long-term shareholder value,” G8 said.