SINGAPORE - Investment company k1 Ventures has entered a redemption agreement with National Realty Trust for divestment of its 10.2 per cent equity interest in KUE 3 LP for nearly US$29 million (S$40.1 million).
KUE 3 LP holds approximately 65 per cent of the ownership interest in National Realty Trust, which is the holding company of US real estate assets which principally comprise special purpose childcare learning centres leased to KinderCare Learning Centres.
The KUE 3 LP divestment is part of k1 Ventures' ongoing process of monetising its investments and the distribution of surplus cash to shareholders. Following the disposal, k1 Ventures will cease to have any interest in KUE 3 LP, but will continue to maintain a contractual right to receive its share of the remaining net cash reserves of Knowledge Universe Holdings.
The transaction is expected to increase the group's earnings per share and net tangible assets per share by approximately 5 cents for the financial year ending June 30, 2017, after taking into consideration adjustments for net assets, income taxes, and the Greenstreet carried interest.