SINGAPORE - Mindchamps PreSchool has signed a joint venture agreement with China First Capital Group (CFCG) that will allow it to make its foray into China.
The joint venture (JV) will see the establishment of a fund that aims to raise an initial tranche of US$200 million from the offering and sale of limited partnership interests to limited partners.
MindChamps and CFCG may also invest in the fund. The fund will be used to set up and acquire pre-school centres under the MindChamps brand in China.
First Capital Asset Management, which is indirectly wholly owned by CFCG, will be appointed as an investment adviser to the fund.
MindChamps and CFCG will also incorporate a new company, which will be appointed the master franchisee in China. MindChamps will own 49 per cent in the master franchisee; and CFCG, the remainder. MindChamps will receive income from areas such as licence fees from the master franchisee as well as royalties from the pre-schools.
Chief executive of MindChamps PreSchool, David Chiem, said of its Champion Mindset pre-schools: "With the success of our research and implementation in Singapore, we are excited to now launch this breakthrough education model in China to make a difference to the children of China and the world at large."
Hong Kong-listed CFCG is a cornerstone investor in the company's initial public offering which took place in November last year. Singapore Press Holdings, which owns The Business Times, also owns a stake in MindChamps.
Wilson Sea, chairman of CFCG, said: "CFCG highly values our tie-up with MindChamps and considers the JV as a core strategic platform of our education business in China. We are fully committed and firmly believe that MindChamps' investors will reap long-term benefits from their investments into the SGX-listed company."
According to a 2017 Deloitte education industry report, China's pre-school education market swelled to 380 billion yuan (S$78.6 billion) in 2016, and is expected to exceed 540 billion yuan by 2020.