Sale of Non-core Subsidiary

RNS Number : 8840N

AEC Education plc

04 October 2012

 



AIM: AEC

AEC Education plc

("AEC" or the "Company" and together with its subsidiaries the "Group")

      Sale of Non-core Subsidiary

AEC is pleased to announce that it has agreed the sale of its non-core examinations subsidiary, Educational Resources Pte Ltd ("ER"), which provides London Chamber of Commerce & Industry examinations in Asia, to Pearson Education South Asia Pte. Ltd ("Pearson") for a total consideration of £2.5 million cash upon completion and a deferred payment of an amount equal to the net consideration received by Pearson Education Limited (a company owned and controlled by Pearson plc) for the sale of 3,000,000 shares it holds in AEC.  The sale is expected to complete before the end of October*.   

The sale is in line with the Board's view expressed in the Company's 2011 Annual Report & Accounts that the Group's examination activity was becoming less of a strategic focus as its college activities grow.

For the financial year ended 31 December 2011, ER contributed revenues of S$3.92 million (equivalent to approximately £2 million), representing 10.5% of overall Group revenues. EBITDA was S$205,651 (equivalent to approximately £0.10 million) and its total assets as at 31 December 2011 amounted to S$6.54 million (equivalent to approximately £3.27 million).

The sale proceeds will be used by AEC to expand its core businesses.

Commenting on the transaction, Chairman of AEC, Liam Swords said,

"We are pleased to have agreed the sale of our LCCI examinations business to Pearson.  It was no longer a key area of our activities and we will be investing the sale proceeds in AEC's core businesses."

* Completion is subject to the satisfaction of certain conditions, all being conditions which are standard in a transaction of this type and within the control of the parties to the transaction.

For the purpose of this announcement, the following exchange rates have been used:

·      closing rate £1:S$0.4983 for the conversion of foreign currency monetary assets and liabilities,

·      historical rate £1:S$0.5009 for the conversion of intangible assets and

·      average rate £1:S$0.4966  for the conversion of revenues and expenses.

For further information contact:

AEC Education plc Liam Swords	[phone]
WH Ireland Limited (NOMAD & Broker) Dan Bate	[phone]
Biddicks Katie Tzouliadis	[phone]

 

END

 

 

DISLLFIDIELVIIF