k1 Ventures divests stake in US unit holding childcare centre assets for US$29m

INVESTMENT firm k1 Ventures has signed a redemption agreement with National Realty Trust to divest its 10.2 per cent equity interest in KUE 3 LP for about US$29 million.

This amount is before any deductions for US income taxes and the Greenstreet carried interest.

KUE 3 LP holds about 65 per cent of National Realty Trust, which is the holding company of US real estate assets, mostly comprising special purpose childcare learning centres leased to KinderCare Learning Centers.

k1 Ventures said: "The KUE 3 LP Disposal is part of the company's ongoing process of monetising its investments and the distribution of surplus cash to shareholders.

"Following the KUE 3 LP disposal, the group 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 about five cents for the financial year ending June 30, 2017, after taking into consideration certain adjustments.