Monday 22 Jul 2024
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KUALA LUMPUR (July 21): Private education provider Cyberjaya Education Group Bhd, formerly known as Minda Global Bhd, is disposing of its Asia Metropolitan University licence and business to privately-held firm Austin Legacy Education Sdn Bhd for RM15 million cash.

The proposed disposal is expected to generate an estimated one-off gain of RM14 million for the group after netting impairment and expenses in relation to the transaction.

Cyberjaya Education said the proposed disposal will enable it to streamline its value proposition, as well as to focus on growing its Cyberjaya brand across its university and colleges.

In a bourse filing on Friday (July 21), the group said Asiamet (M) Sdn Bhd has entered into a sale and purchase of business agreement with Austin Legacy for the proposed disposal. Asiamet (M) is a wholly-owned subsidiary of Asiamet Education Group Sdn Bhd, which in turn is a wholly-owned unit of Cyberjaya Education.

Austin Legacy is jointly owned by Datuk Chong Yoon On and Datin Low Peck Tim, and is in the business of providing private and international higher education courses and related education services. Chong is also a property developer in Johor, and founded and operates Austin Heights International School in Johor Bahru.

According to Cyberjaya Education, the proposed disposal relates to the sale of the business of the provision of higher education courses approved by the Ministry of Higher Education (MoHE) and currently offered by Asiamet at Asia Metropolitan University Johor campus and branch campus in Cyberjaya, Selangor. The business is registered under the Private Higher Educational Institutions (PHEI) Act 1996 pursuant to the PHEI licence issued by MoHE to Asiamet to establish and operate the PHEI in Malaysia.

As such, the proposed disposal is subject to the regulatory approval of MoHE.

"The licence was an internal asset used to operate the Asia Metropolitan University," said Cyberjaya Education.

It plans to use the net proceeds from the proposed disposal for working capital and/or for investment into its expansion programme to increase its capacity and further enhance its students’ learning experience.

The net proceeds are expected to be fully utilised within 12 months of the proposed disposal's completion, it added.

The proposed disposal is expected to increase Cyberjaya Education’s net assets per share and earnings per share by 0.83 sen based on existing 1.68 billion shares in issue.

Barring any unforeseen circumstances, the proposed exercise is expected to be completed by the first quarter of 2024.

Cyberjaya Education shares closed up half a sen or 4.17% at 12.5 sen on Friday, giving it a market capitalisation of RM201.81 million. The stock price has risen 78.57% year to date.

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