KUALA LUMPUR: Paramount Corp Bhd has proposed to dispose of the remaining equity interests in Paramount Education Sdn Bhd (PESB), Sri KDU Klang Sdn Bhd (SKK) and Sri KDU Sdn Bhd (SK) to XCL Education Malaysia Sdn Bhd for RM120mil cash.
In a filing with Bursa Malaysia, Paramount said it had entered into a conditional share sale and purchase agreement (SPA) with XCL Education, formerly known as Prestigion Education Sdn Bhd for the proposed disposal.
Paramount said the original cost of investments in PESB, SKK and SK shares was RM57.31mil.
“The proposed disposal is expected to result in a pro forma net loss on disposal of RM38.96mil to Paramount,” it said.
Paramount said the sale consideration of RM120mil was arrived at on a ‘willing-buyer willing-seller’ basis with a 25% discount from the call option floor price of RM160mil.
“The proposed disposal is part of Paramount’s plan to exit the education industry, and to focus on driving growth for its core business of property development as well as to explore new business opportunities in other industry sectors. It is also to fulfil the previously agreed arrangement to enable Paramount to divest its remaining interests in the subject companies based on the timeline of the call option and put option.
“The proposed disposal will enable Paramount to unlock the value of its minority interests in the subject companies based on the sale consideration which is higher than the put option sum,” it said.
As published: The Star 26 September 2022, Monday