MindChamps to buy Sydney pre-school for A$2.97m
Sign up now: Get ST's newsletters delivered to your inbox
A file photo of MindChamps chief executive David Chiem with MindChamps pre-schoolers. MindChamps' Sydney acquisition is expected to have a positive impact on its earnings per share for the financial year ended Dec 31, 2018.
PHOTO: MINDCHAMPS
SINGAPORE - MindChamps PreSchool will acquire the business and assets of a pre-school centre in Warriewood, Sydney, Australia for A$2.97 million (S$2.9 million).
Through its Australian subsidiary MindChamps Australia, the mainboard-listed pre-school operator has entered into a sale and purchase agreement with trustees CBS Group Investments and Pham Business Investments.
The assets to be acquired include the authorisation of the Australian government agency to carry on providing childcare and education services at the pre-school centre, the benefit of the lease of its premises, the business's intellectual property rights and licences, and the plant and equipment of the pre-school centre.
The purchase consideration was arrived at on an arms' length, willing-seller-willing-buyer basis, and will be funded via a combination of cash from MindChamp's initial public offering (IPO) and an acquisition loan, MindChamps said in a press statement on Tuesday (Oct 30).
The Sydney acquisition is expected to have a positive impact on MindChamp's earnings per share for the financial year ended Dec 31, 2018.
MindChamps operates 10 childcare centres across Sydney and New South Wales.
Its substantial shareholders include The Straits Times' parent, Singapore Press Holdings.
Its stock last traded on Monday, finishing at 62.5 cents.