MindChamps unit to sell preschool for S$800,000 to Yirong Education

Sharanya Pillai

Published Sun, Dec 6, 2020 · 09:19 AM

MINDCHAMPS PreSchool Singapore, a unit of enrichment and childcare service provider MindChamps, has entered an agreement to sell one of its preschools for S$800,000 in cash, the mainboard-listed firm announced in a Saturday bourse filing.

The school being sold is MindChamps UPT, which is fully owned by MindChamps PreSchool. The buyer is Yirong Education, which had also previously bought MindChamps PreSchool @ Changi Business Park, and currently owns and operates the preschool as a MindChamps franchisee.

The selling price is above MindChamps UPT's book value of S$417,259 and net tangible assets value of negative S$106,199, as at end-October. The sale is expected to have a positive impact on MindChamps' financial results for the year ending December 2021.

Shares of MindChamps closed flat at S$0.30 on Friday.