CIBT Agrees to Buy Linkman International Language Institute in China
VANCOUVER, British Columbia -- April 10, 2013
CIBT Education Group Inc. (“CIBT”)(NYSE MKT LLC and TSX: MBA) announced today
that it has signed an agreement to acquire all of the issued and outstanding
shares of Linkman International Language Institute (“Linkman”). The agreement
provides for the purchase funds to be paid into a wholly owned subsidiary of
CIBT in Beijing so that the purchase funds may be used by Linkman for working
capital purposes while allowing CIBT to have full control of the funds.
Linkman is a language institution in China specializing in English language
training for students in primary and secondary school, and professional
English for adults. Linkman will become CIBT’s launching platform for its
language subsidiary, KGIC International College. Linkman will change its name
to KGIC English Academy, part of KGIC’s branding strategy in China, which will
provide KGIC with existing brand, business, infrastructure and local and
experienced management to cost-effectively springboard its strategy of adding
more English training schools in China.
“As CIBT Group’s new division, Global Education Alliance (”GEA”), is gaining
excellent traction in its referral business by sending Chinese students to
elite North American kindergarten to grade 12 schools, the acquisition of
Linkman is timely,” commented by Toby Chu, Vice Chairman President and CEO of
CIBT Education Group. “Due to the decades old One-Child Policy in China, many
Chinese parents contribute significantly to their only child’s education, with
a strong preference to sending their child to study abroad in North America.
In recent months, GEA has referred over 50 students to its partner elite
schools in Canada and the United States, with ages ranging from 5 to 15 years
old, and these students and their parents pay over $25,000 a year in tuition
fees and contribute another $25,000 to $30,000 in capital bonds to our partner
schools. We are seeing an increasing and significant demand for this sector
and the enrollment age is becoming younger. In view of the increasing volume
of primary and secondary school enrollment, the need to establish a youth
bridging program to overcome the language and culture barriers also increases.
For these reasons, a Youth Bridging Program (“YBP”) was developed by KGIC, our
language school subsidiary with 15 years of experience in this sector. Linkman
and other CIBT subsidiaries in China will become the launching platform for
the YBP. Since the introduction of our YBP program in March, we have been
receiving significant interest from language schools all over China and other
parts of Asia. These language schools are interested to offer our YBP to their
existing students with a view to sending their young students to our network
of elite primary and secondary schools in Canada and the United States.
Linkman has an extensive track record in educating young children and its
client base consists of many tier one consumer families who are interested in
sending their child abroad to our network of academic partners in North
About Linkman International Language Institute:
Established in 2008 within the Xiaoshan District of Zhejiang, China, Linkman
International Language Institute ("Linkman") is a language training
institution that has grown at a fast pace. In June 2011, Linkman established a
second training center in Hangzhou, the largest city in the province of
Zhejiang in China. Linkman provides high quality English training programs to
over 200 students in a wide range of age groups, but specializes in Children's
English programs. Linkman's programs include Children's English, Adult General
English, Exam Preparation Courses, and Corporate Training programs.
About CIBT Education Group:
CIBT Education Group Inc. is an education management company focused on the
global education market. Listed on the Toronto Stock Exchange and the NYSE MKT
LLC, CIBT Group owns and operates a network of business, technical and
language colleges and offers cooperative joint programmes in 18 countries. Its
subsidiaries include Sprott-Shaw College (established in 1903), Sprott-Shaw
Degree College, CIBT School of Business China, and King George International
College. Through these subsidiaries, CIBT Group offers Western and Chinese
accredited business and management degrees, and programmes in college
preparation, healthcare, hotel management and tourism, English language
training, English teacher certification, junior and high school preparation
program for overseas study, and other career/vocational training. CIBT Group
also owns Irix Design Group, a leading design and advertising company based in
Vancouver, Canada, and Global Career Center ("GCC"). GCC is a job placement
call center located in the Philippines dedicated to providing employment
services to CIBT Group graduates for free throughout their careers. Visit us
online at www.cibt.net.
For more information contact:
Vice-Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact:1-604-871-9909 Email: email@example.com
Some statements in this news release contain forward-looking information (the
“forward-looking statements”) about CIBT Education Group Inc. and its future
plans. Forward-looking statements are statements that are not historical
facts. The forward-looking statements in this news release are subject to
various risks, uncertainties and other factors that could cause the company's
actual results or achievements to differ materially from those expressed in or
implied by forward-looking statements. With respect to statements in this news
release as to expectations for the acquisition of Linkman International
Language Institute and our plans to integrate it into our existing network of
subsidiary schools, these risks, uncertainties and other factors include,
without limitation, uncertainty as to the company's ability to achieve the
goals and satisfy the assumptions of management; and general economic factors
and other factors that may be beyond the control of the company.
Forward-looking statements are based on the beliefs, opinions and expectations
of the company's management at the time they are made, and CIBT Group does not
assume any obligation to update its forward-looking statements if those
beliefs, opinions or expectations, or other circumstances, should change.
Neither NYSE MKT-LLC nor Toronto Stock Exchange accepts responsibility for the
adequacy or accuracy of this news release.
CIBT Education Group Inc.
Toby Chu, 1-604-871-9909
Vice-Chairman, President & CEO
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