AEC Education plc (AEC) - Sale of Non-core Subsidiary
RNS Number : 8840N
AEC Education plc
04 October 2012
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
· 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 +44 (0)7775 787427
WH Ireland Limited (NOMAD & Broker) +44 (0)161 832 22174
Biddicks +44 (0)20 3178 6378
This information is provided by RNS
The company news service from the London Stock Exchange
DISLLFIDIELVIIF -0- Oct/04/2012 06:00 GMT
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