Asiamet Education to buy Cyberjaya University College for RM166m, and rebrand

PETALING JAYA: Asiamet Education Group Bhd (AEGB) is buying over Cyberjaya University College of Medical Sciences (CUCMS) from SMRT Holdings Bhd and its wholly-owned subsidiary SMR Education Sdn Bhd (SESB) for RM166 million in an all share deal, which will eventually see the transfer of its listing to a reorganised new company.
CUCMS, which is parked under CUCMS Education Sdn Bhd (CESB), comes with a guarantee that the aggregate audited net profit for the financial years ending Dec 31, 2017, Dec 31, 2018 and Dec 31, 2019 shall be RM24.8 million. The vendors also guarantee that the CESB shall achieve an average yearly net profit of at least RM8.28 million for each of the financial years ending Dec 31, 2017, Dec 31, 2018 and Dec 31, 2019.
In a filing with Bursa Malaysia yesterday, AEGB said it will pay for the acquisition of the internationally recognized medical school via the issuance of 830 million shares in AEGB to SESB, which will see the latter emerge with a 48% stake in the group.
SESB however will be requesting for an exemption from having to perform a mandatory general offer (MGO). Following the acquisition, AEGB will exchange shares in the group with a new company, which will later assume the listing status of AEGB.
"The proposed share exchange and proposed transfer of listing are undertaken to facilitate the internal reorganisation and establish a new corporate structure for the newco group as part of the company's plan to re-brand and re-position itself by streamlining the business operations of the newco group," AEGB told Bursa Malaysia.
Barring unforeseen circumstances, the proposals are expected to be completed by the second quarter of 2017.