Malvern Intl Regulatory News (MLVN)

14 Oct 2009 07:00



14 October 2009

AEC

AEC Education plc

("AEC" or "the Company")

Acquisition of Malaysian Educational Companies, 

IMS Professional Training Services Sdn Bhd 

and 

Kasturi Management Consultancy Sdn Bhd

AEC, the educational programmes and examinations provider, is pleased to announce that it has acquired the remaining balance of shares it does not already own in IMS Professional Training Services Sdn Bhd ("IMS") and Kasturi Management Consultancy Sdn Bhd ("Kasturi"), the educational institutes based in Malaysia. The balance of shares, totalling 70% of the issued share capital of IMS and Kasturi, has been acquired for a total consideration of approximately £442,000 (MYR 2,400,000) in cash. An initial 10% of the consideration has been paid, with the balance payable on completion, within 60 days from the date of the agreement of the acquisition.

This transaction follows AEC's announcement on 25 April 2008 that the Company had acquired a 30% stake in IMS and Kasturi through its wholly owned subsidiary, AEC Edu Group Pte Ltd.

The acquisition of the balance of shares in IMS and Kasturi makes them wholly-owned subsidiaries of the Company and is in line with the Board's objective to accelerate the expansion of AEC through complementary and easily integrated acquisitions. The move also better positions AEC to take advantage of high growth opportunities within the Malaysian education sector.

Kasturi owns Kolej Kasturi ("KK"), a leading provider of professional and business programmes in Malaysia. KK offers Association of Certified Chartered Accounts ("ACCA") and Certified Accounting Technician ("CAT") accounting programmes and a range of English Language training programmes.

IMS runs the Institute of Management Studies, one of the five approved institutions in Malaysia to provide the prestigious, globally-recognised Certified Financial Planner (CFP) programme in the country. This programme is offered in the classroom and on online. IMS also runs a Master of Science in Management and Accounting & Planning in collaboration with Universiti Utara Malaysia.

The unaudited management accounts for the eight months to 31 August 2009, showed the combined operations of IMS and Kasturi recording a profit before tax of MYR 545,488 (approximately £100,500). The unaudited net assets as at 31 August 2009 for IMS and Kasturi were MYR 1,442,461 (approximately £266,000). 

The figures above assume a conversion rate of 1GBP: 5.425 MYR.

Liam Swords, Chairman of AEC Education plc, commented, 

"I am delighted to announce the acquisition of the balance of shares in KK and IMS, which we do not already own. The move brings these highly-regarded educational programme providers wholly within the Group and strengthens AEC's presence in the Malaysian marketplace.

Both KK and IMS focus on the provision of business and professional programmes, demand for which is high in the Far East. We see good opportunities to expand their offering and take advantage of the growth of the Malaysian education sector, which is supported by the Malaysian government's plan to substantially increase the number of students pursuing tertiary studies."

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