Amd Commo Exagr Regulatory News (COMG)

15 Mar 2006 07:00

Europasia Education PLC15 March 2006 15 February 2006 EUROPASIA EDUCATION New Investment in Chinese Education Business Europasia Education plc ("EPE"), the AIM listed education investment group, hastaken an 8% stake in Chinese educational facilities management group DalianBusiness Institute Ltd ("DBI") for £0.7 million. DBI is a Jersey incorporated company with a 25 year contract for the managementof Dalian Business Institute in Liaoning Province, China ("DBIC"). Founded in 1997, DBIC is a nationally accredited comprehensive three-yearcollege focusing on business and arts subjects. There are currently over 5,000students, based in the campus in Liaoning Province, China. There are 6 collegesand 5 faculties on the site, providing 3-year diploma, degree and distancelearning courses in 8 specific areas: Business Management; International Trade;International Accounting & Finance; Information Technology; InternationalTourism; Foreign Languages; Business Laws; and Arts. Pro forma accounts for the business for the year ended 31 July 2005 show aturnover of £1.72 million and profits of £1.67 million. The consideration of £0.7 million for the acquisition is being satisfied via theissue of 4.45 million EPE shares at a price of 7.50p per share, and a payment of£0.3 million in cash. The shares issued will be subject to a six month lock-upfrom date of issue. This is EPE's second investment in a Chinese private education group, with itsfirst, China Education Group ("CEG"), operating a similar business but in adifferent part of China, Shandong Province. Its investment in CEG, made lastyear, has increased considerably in value since EPE invested and CEG listed onOfex at 32.25p in December 2005, with the share price currently at a record48.5p following recent news of a deal allowing access to over 1 millioncorrespondence students in a market currently worth £800 million a year, and a47% increase in pro forma profits announced in the Interim results to 31December 2005. Mr Zhang Wenchao, President of DBIC, said: "We are very pleased to haveEuropAsia Education as a major investor and to have access to its knowledge andability to help us develop our business in China and elsewhere. Our aim is toseek a listing on Ofex with the support of EPE." James Holmes, EPE Chairman, said: "We are delighted that the recent successfulfund raising has enabled us to take a stake in DBI. It is a similar business toCEG, which is proving to be an excellent investment for our shareholders. Welook forward to developing the synergies between DBI, CEG and our existingbusinesses in the UK. If and when DBI lists on Ofex we will be looking to takepart in any fundraising, thus increasing our stake." For further information, contact: Paul Quade James HolmesCity Road Communications Europasia Education plcTel 020 7248 8010 Tel 020 7248 7578 About Dalian Business Institute China Dalian Business Institute China (DBIC), located in the hub of Dalian city inLiaoning Province, is a nationally accredited comprehensive three-year collegefocusing on business and arts subjects. The college diplomas awarded by DBI arerecognised by the Ministry of Education (MOE), the government authority ofChina. In China, only a degree or diploma granted by a university or collegeaccredited by the Ministry of Education can be recognised officially in thenation. This information is provided by RNS The company news service from the London Stock Exchange