Raffles Education to sell Hebei Oriental University operator for around S$85 million

China yuan coins

Raffles Education said Monday its subsidiary Langfang Tonghui Education Consultancy agreed last week to sell its 51 percent stake in Hebei Oriental University operator Langfang Development Zone Oriental University City Sino-Singapore Education Investment for 420 million yuan, or around S$84.62 million.

“Langfang Development Zone Oriental University City Sino-Singapore Education Investment has not generated positive cash inflow since its inception” in 2009, Raffles Education said in a filing to SGX before the market open. “Barring any unforeseen circumstances, the company believes that the financial position of Langfang Development Zone Oriental University City Sino-Singapore Education Investment is unlikely to improve in the near future.”

The purchaser, Liu Yanwen, has injected funds into Langfang Development Zone Oriental University City Sino-Singapore Education Investment over a period of years for operating expenses so the college would meet its requirements to be recognized as an undergraduate college in 2016, the filing said.

Raffles Education said it would use the sales proceeds for working capital purposes, repayment of loans or opportunistic investments.

 

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