AEC Education plc AEC Sale of Non-core Subsidiary

  AEC Education plc (AEC) - 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                      +44 (0)7775 787427

Liam Swords
WH Ireland Limited (NOMAD & Broker)    +44 (0)161 832 22174

Dan Bate
Biddicks                               +44 (0)20 3178 6378

Katie Tzouliadis



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


DISLLFIDIELVIIF -0- Oct/04/2012 06:00 GMT
 
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