Malvern Intl Regulatory News (MLVN)

11 Sep 2007 07:01

AEC Education plc11 September 2007 AEC Education plc 11th September 2007 AEC Education plc Acquisition of 51% of Asia-Australia School of Management AEC Education plc ("AEC" or "the Company"), is pleased to announce theacquisition of 51% of Asia-Australia School of Management Pte Ltd ("AASM"),incorporated and operating in Singapore. AASM is a private education provider based in Singapore which recruits studentsfrom China for its Business Management and Logistics program. AASM hasoperations in Shenzhen and Changchun in China which are focused on studentrecruitment, adult education and placement and advisory services. The school currently has 200 students and is projected to grow significantly in2008. The company made an audited profit-after-tax of SGD$128,644 (approximately£42,000) for the year ended 31 December 2006 and had audited net assets ofSGD$221,387 (approximately £73,000) at 31 December 2006. The cost of the acquisition is SGD$331,500 (approximately £110,000) which willbe settled by the issue of new AEC ordinary shares at a price of 11p per shareat an exchange rate of £1= SGD$ 3.02. The total number of new ordinary sharesissued will be 997,893. Fifty per cent. Of the new ordinary shares (498,946ordinary shares) will be issued to AASM shareholders immediately. The remainderwill be paid in equal tranches over the next two years subject to theachievement of a target profit of SGD$185,000 (approximately £60,000) per yearover the next two years. If the profit target is not achieved, the number ofshares will be reduced proportionately. Mr. David Ho, CEO of AEC Edu Group Pte Ltd, said "This is another smallsynergistic acquisition in line with AEC's strategy. China is rapidly expandingits education and training in preparation for the Beijing Olympics in 2008 andthe Shanghai World Expo in 2010. The country is urgently preparing its citizensfor the bilingual requirements of these two mammoth events. With thisacquisition, AEC will be well-poised to take advantage of the market opportunitythat this demand represents." The 498,946 new ordinary shares issued as a result of the acquisition will rankparri passu with the Company's existing ordinary shares of 10p each in issue.AEC has made application for admission to trading on AIM of the 498,946 newordinary shares and trading in the new ordinary shares is expected to commenceon 17 September 2007. Following this issue, the Company's total number ofissued ordinary shares will be 15,414,988. **End** For further information please visit www.aeceduplc.co.uk or enquire to: Mr Haider M SithawallaAEC Edu Group Pte LtdTel: (65) 6320 4879Fax: (65) 6224 8018Email: hmsithawalla@aec.edu.sg Nabarro Wells & Co LimitedTel: +44 (0) 20 7710 7400David Nabarro, Anthony Rowland About AEC Education Plc AEC is the UK holding company for a number of companies, founded in 1985 inSingapore and Malaysia that provide business educational services toapproximately 16,000 students in the Asia-Pacific region: the fastest-growingsource market for international students. The AEC Group offers class-based instruction at the largest educational campusin Singapore's Central Business District and distance learning up topostgraduate level. In addition, it provides degree qualifications on behalf ofseveral leading international universities, targeting the large volume ofoverseas students that the Singaporean government has announced in the GlobalSchoolhouse Vision it intends to increase. AEC's aim is to be a leader in quality education through facilitating learning,fostering creativity and developing knowledge, skills and confidence in itsstudents. Its receipt of four Singapore Quality Class Awards shows the Group'srecognition by the Singaporean Government as a prestigious and forward-movingcompany. In August 2006, AEC was awarded the CaseTrust for Private Education Organizations, a student protection scheme for foreign students. This is afurther step by AEC in its recognition as a quality provider in the educationindustry. This information is provided by RNS The company news service from the London Stock Exchange