SINGAPORE (Oct 7): Construction and property group Chip Eng Seng Corporation (CES) is acquiring a 38% stake in educational programmes developer Amdon Consulting for $5.4 million.
In a bourse filing on Monday after market close, the company announced that its wholly-owned subsidiary, CES Edutech, had entered into both a share subscription agreement to acquire for new ordinary shares, as well as a sale and purchase agreement with Amdon Consulting to acquire all ordinary shares held by the company in the issued share capital.
The Amdon Group, together with its subsidiaries, including Werkz Asia, Werkz Publishing and Wekz Technology, is a provider of interactive content and inquiry-based pedagogical resources, especially in the fields of science and technology.
CES reported that the consideration was arrived at on a willing-buyer, willing-seller basis, taking into consideration, among others, the management strength and capabilities of the Amdon Group.
The group will pay the consideration amount in cash and will be funded from internal cash resources.
CES noted that the acquisition will contribute to its strategic direction for its education business segment to invest into a group of educational technology companies that will provide synergistic opportunities to achieve growth in a key education sector.
It adds that the online delivery platform and digital learning content and resources developed by Amdon Group will support the recent investments made by the company’s education business segment in elementary schools and pre-schools.
Shares in Chip Eng Seng closed flat at 63 cents on Monday, before the announcement.
