MindChamps sells Toa Payoh centre to franchisee for S$5.1m

MINDCHAMPS PreSchool on Thursday said it has sold a Toa Payoh centre on a turnkey basis to Iconic Investment for S$5.1 million.

Its wholly-owned subsidiary MindChamps PreSchool Singapore completed a share purchase agreement with Iconic Investment for all the shares of the target company, MindChamps PreSchool @ TPY Pte Limited, which operates the centre at 490 Lorong 6 Toa Payoh.

The target company will continue to carry on the business at the centre but as part of a franchise agreement, under which MindChamps will receive royalties.

The transaction is expected to have a material positive impact on the group's consolidated earnings per share and net tangible assets per share for the financial year ended Dec 31, 2019.

MindChamps said the sale was in the ordinary course of its business, under its global franchising model.

The consideration was arrived at on an arms' length basis, after taking into account factors such as the existing assets, financial position and business prospects of the target company, MindChamps said.

As at Dec 31, 2018, the book value of the target company was S$2.39 million while its net tangible asset value was S$2.38 million.

MindChamps shares last closed at S$0.475 on Tuesday, down one Singapore cent or 2.2 per cent.