Sri Lankan higher education institution brought by Malaysian private equity firm
Asia Pacific Institution of Information Technology Lanka Ltd (APIIT Lanka), which is a private tertiary education institution in Sri Lanka, has reportedly been bought by BG Investments Ltd. from Ekuiti Nasional Bhd (Ekuinas), a Malaysian government-linked private equity firm and Expolanka Holdings Plc.
The local media has reported that the sale was based on an enterprise value of Rs. 1.9 billion.
Ekuinas’ stake was sold for Malaysian Ringgit 41 million (or Rs. 1.76 billion) and Asia Securities had advised the sellers on this transaction.
“We are pleased to report that the divestment generated a gross internal rate return (IRR) of 17.5% and a money multiple of 2.2 times the capital invested. This will bring Ekuinas’ total realisation proceeds to more than RM2.7billion,” Ekuiti Nasional CEO Syed Yasir Arafat Syed Abd Kadir has reportedly said in a statement.
“Ekuinas’ decision to divest APIIT Lanka is in line with its investment strategy to crystallise its assets when the time is right, as well as finding the right partner for the assets,” he has noted.
Expolanka Holdings’ investment in APIIT has been stated at Rs. 99 million, the local media has reported.
BG Investments is a Sri Lankan-based investor with exposure in industries such as financial services, marine, education, and healthcare. It has identified education as a high potential sector in Sri Lanka and wishes to expand its footprint in this sector through the acquisition.
“With BG Investments, we are confident that with their local knowledge, expertise, and resources, we see them as the right owners who will be able to take APIIT Lanka through their next growth phase,” Syed Yasir Arafat has further stated.
Established in 2000, APIIT Lanka was an international collaboration between APIIT in Malaysia and Expolanka Holdings PLC, with links to a wide range of reputable universities in the UK and Australia.
According to reports, APIIT Lanka’s objective is to provide higher education of international standards to produce globally competitive graduates who will meet the demands of the modern society.
OSL take:
The take over of a Sri Lankan higher education institution by a Malaysian based company is indicative of the emerging business/investment opportunities in Sri Lanka’s higher education sector. The government of Sri Lanka has given priority to the country’s higher education sector in line with Sri Lanka’s long term development plans. Many foreign universities have opened pathway colleges in Sri Lanka as well. Therefore foreign businesses/investors could explore business opportunities in Sri Lanka’s higher education sector.
| Article Code : | VBS/AT/18072019/Z_7 |