Chip Eng Seng has entered a deal to acquire Tarneit West Childcare’s childcare center business in a suburb of Melbourne, in Victoria, Australia, for A$3.5 million, the Singapore-listed company said in a filing to SGX Thursday.
“The proposed acquisition presents the company with the opportunity to extend its footprint in the childcare business into Australia,” Chip Eng Seng said. “The company has a long-term objective to own more pre-school facilities in Australia and views the business as an
ideal starting point to build up its reputation and track record in Australia.”
Chip Eng Seng pointed to its other businesses already operating in Australia, including the property development and hospitality segments.
“The company believes that Australia is also a choice location to expand its education business given the country’s stable economy and sound legal system,” it added.
The childcare center, which has a maximum enrollment of 130, is currently operating under the “Kool Kidz” franchise, which will be terminated once the acquisition is completed, Chip Eng Seng said.
Chip Eng Seng plans to engage its 70 percent-owned subsidiary, White Lodge Education Group Services, to manage and operate the childcare center, the filing said.
“The business would benefit from the extensive experience and expertise of the incumbent management of White Lodge, accumulated from over two decades of operating pre-school centres in Singapore and Malaysia,” Chip Eng Seng said.
The company said it would fund the acquisition from internal cash resources.
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