Sunday 21 Jul 2024
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KUALA LUMPUR (April 30): The proposed sale of Cyberjaya Education Group Bhd's Asia Metropolitan University license and business to Austin Legacy Education Sdn Bhd for RM15 million cash has fallen through.

In a bourse filing on Tuesday, the private education provider said that Asiamet (M) Sdn Bhd, notified Austin Legacy that clause 5.3 of the sale and purchase of business agreement was not fulfilled, resulting in the termination of the agreement.

Asiamet (M) is a wholly-owned subsidiary of Asiamet Education Group Sdn Bhd, which in turn is a wholly-owned unit of Cyberjaya Education.

However, the group did not provide details regarding clause 5.3.

Asiamet (M) signed a sale and purchase of business agreement with Austin Legacy in July 2021 for the disposal of Asia Metropolitan University license and business to Austin Legacy.

Austin Legacy is jointly owned by Datuk Chong Yoon On and Datin Low Peck Tim, and is engaged in 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 involves the sale of higher education courses approved by the Ministry of Higher Education, currently offered by Asiamet at Asia Metropolitan University's campuses in Johor and Cyberjaya, registered under the Private Higher Educational Institutions Act 1996. Therefore, the proposed disposal is subject to the regulatory approval of MoHE.

Cyberjaya Education intended to use the net proceeds from the proposed disposal for working capital and/or investment into its expansion program to increase capacity and enhance students' learning experience.

Shares in Cyberjaya Education closed half a sen or 0.56% lower at 89 sen on Tuesday, valuing it at RM148.61 million.

Edited ByAdam Aziz
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