By Gigi Chua/theedgemarkets.com
KUALA LUMPUR (Nov 19): Paramount Corp Bhd has partnered with University of Wollongong (UOW), an Australian public university, to enhance its tertiary education business.
Through this partnership, UOW’s wholly-owned subsidiary UOW Global Enterprises will take up 65% stake in the business and operations of KDU University College and KDU Penang University College respectively, and a 70% stake of that in KDU College for RM38.5 million.
"UOW brings higher education expertise from Australia, Hong Kong and Dubai, while Paramount’s experience and presence in Malaysia, combined with our strong management skills and brand credibility, would be a powerful combination. We envisage both to contribute and benefit from the growth in business," Paramount Group chief executive officer Jeffrey Chew said today.
Paramount is expecting to gain about RM20 million in profit from this partnership, Chew told reporters at a press conference today.
The proposed exercise is expected to be completed within three months.
UOW Vice-Chancellor Professor Paul Wellings said the strategic partnership builds on the university’s success in providing world-class tertiary education to students in Malaysia by enabling UOW to become a direct provider in this vibrant market.
"Through this partnership UOW will contribute more significantly to realising the Malaysian Ministry of Education’s vision of creating a higher education system that ranks among world leaders and enables Malaysia to complete more effectively in the global economy," said Wellings.
Through an asset securitisation proposal announced on Oct 25, 2018, KDU University College and KDU Penang University College would dispose of their university campus properties worth RM420 million prior to the entry of UOW, and subsequently lease back these properties.
At 10.28am, Paramount was up three sen or 1.44% at RM2.12 for a market capitalisation of RM907.94 million.