TMC Education Corporation shares surged as much as 120 per cent yesterday on news of a takeover bid by the chief executive of real estate developer Fragrance Group.

The stock, which had resumed trading after a trading halt on Thursday pending an announcement, kicked off at 6.8 cents before hitting an intra-day high of 8.8 cents. It closed 90 per cent up at 7.6 cents with about 414,000 shares worth $31,100 changing hands.

It was announced yesterday morning that Singapore tycoon Koh Wee Meng had entered into a share purchase agreement with TMC Education's controlling shareholders, Dr Chin Kon Yuen and his wife, Ms Yeow Cheng Khim, to buy about 85 million ordinary shares at 6.75 cents apiece.

Mr Koh made the offer through JK Global Assets. The mandatory unconditional cash offer follows JK Global Assets' acquisition yesterday of a 51 per cent stake in the firm from Dr Chin, TMC Education's executive chairman, and Ms Yeow, the director and chief executive.

After the completion of the deal, Ms Yeow will still hold about 11.65 per cent of TMC Education.

The offer represents a 69 per cent premium over TMC Education's last traded price prior to Thursday's trading halt of four cents and a 50 per cent premium to the stock's one-month volume-weighted average price.

Mr Koh does not intend to continue the main education business but has no plan to introduce any major changes to the business. He also plans to retain TMC Education's Catalist listing status.

The takeover bid comes after TMC Education announced late on Thursday that it plans to sell wholly owned TMC Academy to Advanced Investment Holdings, a special purpose vehicle controlled by Dr Chin and Ms Yeow.

An independent valuer's preliminary indicative valuation of TMC Academy said the sale shares were worth $5.2 million as at Sept 30.

Earlier this month, Mr Koh's bid to take over New Wave Holdings fell through.