AEC Education plc
("AEC" or "the Company")
Acquisition of Educational Resources Pte Ltd
AEC is pleased to announce the exchange of contracts to acquire the 65% of Educational Resources Pte Ltd (“ER”)
that it does not already own (“the Acquisition”) with effect from 4 January 2008. ER is incorporated in Singapore
and has four wholly owned subsidiaries. Following the Acquisition, AEC will hold 100% of the issued share capital
ER has a open ended Agency Agreement with Education Development International Plc (“EDI”) which is subject to
performance criteria to deliver the London Chamber of Commerce and Industry (“LCCI”) qualifications and currently
has offices in Singapore, Malaysia, Hong Kong and China. ER also has an Agreement with MYOB, the large Australian
based competitor to the Sage accounting packages, to deliver qualifications for the training in the use of its
products across the Asian markets.
ER recorded 101,360 examination entries in Asia during year ended 30 September 2007. 80,700 of these were from the
core markets of Malaysia, Singapore and Hong Kong.
AEC and ER currently operate in a range of mutual territories and the AEC Directors believe that this mutuality,
combined with a range of marketing synergies, provides the opportunity for greater productivity and growth for the
EDI holds 50.38% of the shares in ER and their Chairman, Chief Executive and Finance Director are on the board of
ER. They will resign with effect from the date of signing the Agreement (3 December 07). Liam Swords and David Ho
of AEC are also on the board of ER and will continue as directors into the future.
EDI has been offered a seat on the Board of AEC which will be taken up at a time to be agreed between the parties
in the future.
ER reported audited turnover and profit-after-tax of SGD3,622,663 (£1,215,783) and SGD281,443 (£94,454),
respectively, for the year ended 30 September 2006 and had audited net assets of SGD3,493,164 (£1,172,203) at 30
The cost of the acquisition is approximately £410,000 which will be settled by the issue of new AEC ordinary
shares at a price of 11.5p per share. An initial issue of 2,593,750 shares will be made to the vendors of ER at
the time of completion and a further 950,000 shares will be issued as deferred consideration 2 years after
The 2,593,750 new ordinary shares issued as initial consideration will rank pari passu with the Company’s existing
ordinary shares of 10p each in issue. AEC will make application for admission to trading on AIM of these shares
and trading in the new ordinary shares is expected to commence on 5 January 2008. .
An exchange rate of £1=SGD2.98 has been used in this announcement.
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For further information please visit www.aeceduplc.co.uk or enquire to:
Mr Haider M Sithawalla
AEC Edu Group Pte Ltd
Tel: (65) 6320 4879
Fax: (65) 6224 8018
Nabarro Wells & Co Limited
Tel: +44 (0) 20 7710 7400
David Nabarro, Anthony Rowland
About AEC Education Plc
AEC is the UK holding company for a number of companies, founded in 1985 in Singapore and Malaysia that provide
business educational services to approximately 16,000 students in the Asia-Pacific region: the fastest-growing
source market for international students.
The AEC Group offers class-based instruction at a large educational campus in Singapore's Bukit Merah District and
distance learning up to postgraduate level. In addition, it provides degree qualifications on behalf of several
leading international universities, targeting the large volume of overseas students that the Singaporean
government has announced in the Global Schoolhouse Vision it intends to increase.
AEC's aim is to be a leader in quality education through facilitating learning, fostering creativity and
developing knowledge, skills and confidence in its students. Its receipt of four Singapore Quality Class Awards
shows the Group's recognition by the Singaporean Government as a prestigious and forward-moving company.
In August 2006, AEC was awarded the CaseTrust for Private Education Organizations, a student protection scheme for
foreign students. This is a further step by AEC in its recognition as a quality provider in the education industry.