Chip Eng Seng entered a deal to acquire an around 38 percent stake in educational technology company Amdon Consulting for S$5.4 million, the construction and education company said in a filing to SGX Monday.
Under the deal, Chip Eng Seng will subscribe for new shares in Amdon Consulting and acquire existing shares held by some of its shareholders, the filing said.
In addition, Chip Eng Seng may subscribe for more new shares, subject to Amdon Consulting’s performance over a 12-month period, potentially increasing its stake to around 42.7 percent, the filing said.
Amdon Consulting develops interactive content and inquiry-based resources for STEM, or science, technology, engineering and mathematics, educational programs, the filing said, adding the programs use a proprietary platform with artificial intelligence (AI) to create personalized learning methods for students.
“The company believes that the online delivery platform and the digital learning content and resources developed by the Amdon Group will support the recent investments made by the company’s education business segment in elementary schools and pre-schools to offer high-quality education,” Chip Eng Seng said.
The consideration will be paid in cash, funded via internal resources, the filing said, adding the deal is expected to be completed in the fourth quarter of this year.