Deal to buy US university by Raffles Education's unit is terminated

A DEAL by a unit of Raffles Education to acquire a company that owns and operates the Sante Fe University of Art and Design in the United States has been terminated, the group said in a Singapore Exchange filing on Wednesday.

The buyer, Raffles Education's wholly-owned indirect subsidiary Joshua Education, and seller, LEI Holdings US-1, have mutually terminated the agreement as regulatory approvals pertinent to the acquisition is unlikely to be granted on or before April 3, 2017, the extended closing date for the purchase.

The acquisition had been conditional upon the receipt of regulatory approvals and notices from the Higher Learning Commission and the United States Department of Education.

Following the termination, both parties will each receive the principal amount of US$5 million - the amount each party had contributed to the escrow account for the acquisition, plus any interests agreed upon with the escrow agent.