MindChamps to acquire Sydney preschool for A$2.97m

MAINBOARD-LISTED MindChamps PreSchool, through its Australian subsidiary MindChamps Australia, has entered into a sale and purchase agreement with trustees CBS Group Investments Pty Ltd and Pham Business Investments Pty Ltd, to acquire the business and assets of a preschool centre in Warriewood, Sydney, Australia for A$2.97 million (S$2.9 million).

The assets include the authorisation of the Australian government agency to carry on providing childcare and education services at the preschool centre, the benefit of the lease of its premises, the business's intellectual property rights and licences, and the plant and equipment of the preschool centre.

The purchase consideration was arrived at on an arms' length, willing-seller-willing-buyer basis, and will be funded via a combination of cash from MindChamp's initial public offering (IPO) and an acquisition loan, the preschool operator said in a press statement on Tuesday.

The Sydney acquisition is expected to have a positive impact on MindChamp's earnings per share for the financial year ended Dec 31, 2018.

MindChamps operates 10 childcare centres across Sydney and New South Wales.

MindChamps' substantial shareholders include The Business Times' parent, Singapore Press Holdings.

Its counter last traded on Monday, finishing at 62.5 Singapore cents.