Riso Kyoiku Co., a Japanese cram school operator targeting wealthy parents, plans to double its centers to about 250 in five years to spur revenue, Chairman Mitsugu Iwasa said.
Riso Kyoiku aims to double the number of students to about 40,000 by adding schools mainly in Tokyo, and is considering expanding abroad, Iwasa said in an interview. Deutsche Bank AG (DBK) will buy options from Riso Kyoiku to purchase as much as 4.2 billion yen ($55 million) in treasury stock, according to a filing to the Tokyo Stock Exchange this week.
“The firm is expanding its business in Japan and seeking to launch operations overseas,” Iwasa, 62, said. “We will also aggressively seek mergers and acquisitions with firms that enable us to work together for mutual benefit.”
Shares of Tokyo-based Riso Kyoiku have climbed 18 percent in the past six months, bucking a 12 percent decline in the benchmark Topix index, as more of its students passed entrance examinations for top Japanese schools. It costs 1 million yen for students from elementary to high schools to take the one-on- one class in a year, the most in Japan, Iwasa said.
Riso Kyoiku has boosted revenue for 26 years in a row since its 1985 foundation, documents on its website show. Revenue climbed 8 percent to 18.8 billion yen in the year ended Feb. 28.
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