KUALA LUMPUR, Jan 29 — Paramount Corporation Bhd has received the nod from the Ministry of Education (MOE) to sell its controlling equity interest in its pre-tertiary education business to Prestigion Education Sdn Bhd (formerly known as Two Horses Capital Sdn Bhd) for RM540.5 million.
The pre-tertiary institutions involved in the transaction are Sri KDU Schools, REAL Schools, REAL Kids pre-schools, and Cambridge English For Life (CEFL) enrichment centres.
Paramount Corp group chief executive officer Jeffrey Chew said MOE’s approval is the last condition precedent to the completion of the sale and purchase agreement which was signed on June 19 last year.
“The transaction is expected to be completed by the first quarter of this year,” it said in a filing to Bursa Malaysia today.
He said upon completion of the transaction, Paramount Corp would retain an effective 20 per cent stake in the pre-tertiary education business.
“Of the proceeds, RM177 million will be distributed to shareholders as special dividend, RM150 million to acquire land bank in the next two years, RM133.6 million to partially repay borrowings and RM57 million will be used as working capital.
“On a pro forma basis, the gain arising from the disposal is estimated at RM487.8 million,” he said.
He said the sale would pave the way for the company to focus its resources into growing its core business of property development while exploring new business opportunities.
“Paramount Corp will look for good land banks that we can develop in the next five years,” he said.
He said the company would also look into joint ventures in property development and property-related businesses while strengthening its construction capabilities and expanding its co-working spaces and services.
“Last but not least, we will be venturing into property development overseas,” he added. — Bernama