RAFFLES Education Corp has entered into two agreements to acquire up to 50 per cent in Raffles College of Higher Education (RKL).
It currently has a stake of 20 per cent in RKL.
The first agreement is to acquire 464,000 shares - or 29 per cent - in RKL from Doris Chung Gim Lian for RM8.38 million (S$2.86 million). Ms Chung is the spouse of Chew Hua Seng, the chief executive of Raffles Education Corporation.
The second agreement is a conditional share purchase agreement to purchase 336,000 RKL shares, or 21 per cent in RKL for around RM6.07 million. This is conditional upon the approval of the Ministry of Education of Malaysia.
If it receives the approval, this would lift its stake in RKL to 70 per cent.
"The acquisition is in line with the company's long-term business plan to access the growing educational industry in Malaysia," it said.
The principal business activity of RKL is the provision of training programmes and courses in design and management.
Independent advisory firm RSM Strategic Business Advisors valued RKL in a range of RM28.9 million to RM36.1 million as at July 1 last year.