Ekuinas agrees Malaysia education bolt-on

According to a regulatory filing, Ekuinas-owned ILMU Education will acquire Sapura's 49% stake in both APIIT and Asia Pacific University (APU). ILMU will also purchase Sapura's 37.6% interest in APIIT Sri Lanka. Ekuinas first acquired APIIT and APU in 2011 when it took at 51% stake in both institutions from Sapura for MYR102 million.

APIIT posted net profit of MYR9.6 million in the 2014 financial year, while APU and APIIT Sri Lanka generated MYR27.1 million and LKR162.9 million ($1.1 million), respectively. EBITDA for the three institutions came to MYR15.8 million, MYR38.2 million and LKR195 million.

Although APIIT has declared dividends for the past four years, Sapura said the group's payout for the 2015 financial year had been affected by budgeting requirements related to an APU campus development project expected to be completed this year.

Ekuinas, which is controlled by the Malaysian government, targets established growth companies that demonstrate strong track records and expansion ambitions. Recent activity in the education sector has included the acquisition last year of a 70% stake in private school chain Tenby Educare in a MYR70 million deal.

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• Topics
• Southeast Asia
• Buyouts
• Malaysia
• Ekuinas
• Education