Investment proposal for a Divestiture and Private Placement Educational Institute

Investment proposal for a Divestiture and Private Placement Educational Institute

About the company

The target investee company is a leading educational institution, which was established in 1999, is a group of subsidiaries which owns number of educational institutions, operating in Sri Lanka and the Middle East offers UGC and TVEC Sri Lanka approved Degrees and other courses.

  • Ranked No 4 in the private higher education sector in the survey conducted by LMD Magazine in 2013, This survey was carried out amongst 43 selected.

  • The company is a ISO 9001:2008 certified institution.
  • These institutions provide technical tertiary education and training related to wider range of disciplines including Engineering, Quantity Surveying IT/Computing, Law, Bio Medical Sciences, Construction and Business Management. The Campus has strong international collaborations and affiliations with well reputed foreign universities in UK, Australia, Malaysia etc.

  • The two main campus branches are operating in Colombo and Mount Lavinia, and five others in main cities in Sri Lanka. It also operates a successful overseas center in Middle East. Further plans are under way to open more overseas centers following the success in Sri Lanka.

Investment opportunity

A prospective strategic investor is sought to acquire a sizable stake to establish controlling interest in the company by way of purchase of existing shares and infuse further capital by way of a private placement.

Brand Strength (Recognitions and achievements)

  • Awarded for academic excellence and pioneering initiatives by Pearson, UK

  • The highest award “Platinum Partner” from Pearson (Edexel UK) has been awarded. The Campus was selected for this award for its outstandingly best performance amongst the higher education institutions in Sri Lanka delivering HND courses. (2016)

Student population

As at 01/04/2017 student base of the campus stood at approximately 3,500.

There is a high demand for private higher education since there is only 20% of students get the chance to enter the state universities. Hence the demand for private higher education sector grows day by day.

Academic Staff

The academic staff consist of panel of full time lecturers holding PhD and Masters degrees with ample teaching experience. Number of academic staff counted to 176 in total in 2016. The staff operate under the leadership of a senior professional who had held position of Vice Chancellor at a leading state university and of University Grants Commission.

Academic partnerships and collaborations

  • The university has academic partnerships / collaborations with University of Wolver Hampton, UK; University at Albany State; University of New York; HELP University, Malaysia; University of Canberra, Australia; Liverpool John Moore University, UK and University of East London, UK. etc.

  • These collaborations were established through legal agreements and on annual minimum guaranteed payment to these foreign universities subject to change according to student number enrolled for each course.

  • Ministry of Higher Education has recommended Company to build its own campus with an own degree program which could be offered for the areas of

    • Quantity Surveying
    • Business management
    • Computing and Information Technology

Financial Information

  • For 2016/17 financial period amalgamated profits of the group excluding Middle East business stood at Rs 71 million and the revenue was Rs 457 million, whilst the figures for Middle East operation was 85 million and Rs 189 million respectively.
  • It is projected that for 2017/18 the group’s Sri Lankan operation will record a profit of LKR97.5 million while Middle East operation will record a profit of LKR 122 million.
  • In terms of long term financial sourcing, the company currently has 2 bank facilities amounting to Rs 150 million and loans from other sources Rs 110 million.

    Outlook

    • Company is planning to establish a new fully-fledged university in Sri Lanka, including a hostel with a Ministry of Higher Education approval. With this approval, the company will receive government funded students though UGC for their degree programs (This is in line with new policy pf the government as approved at last budget)

    • Expand into more lucrative overseas operations in certain other centres in the Middle East.

    • Plans to launch more undergraduate and post-graduate level courses in Healthcare and Engineering.

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    OPPORTUNITY CODE : VBS/OP/25072017/X_1

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