GUH ventures into education sector

KUALA LUMPUR: GUH Holdings Bhd is venturing into the education sector by acquiring 25% equity interest in international school operator Straits International Education Group Sdn Bhd (SIEG) for RM11mil.

The Penang-based group, whose businesses range from printed circuit board manufacture to property development, told Bursa Malaysia on Monday that its unit GUH Capital Sdn Bhd was subscribing to 1.17 million shares in SIEG, which currently operates a private international school in Bayan Lepas, Penang.

SIEG also has a 100% stake in a project to manage an international school in Rawang, Selangor, and a 49% stake in a project to operate another international school in Penang.

GUH also announced on Monday its unit GUH Asset Holdings Sdn Bhd’s acquisition of a 100% stake in Milan Diamond Sdn Bhd, which is in the process of buying 3 acres in Rawang that it plans to lease to SIEG for the international school development.

GUH Asset will pay RM2 for Milan Diamond’s shares and settle the vendors’ liabilities of RM6.77mil.

GUH, via Milan Diamond, inked an agreement with SIEG and its unit KK Straits International Education Sdn Bhd on Monday for the proposed lease of a school campus to be built on the land for a 20-year term.

The construction of the Rawang school is expected to start in the first half of this year and to be completed next year.

GUH estimated the construction cost to be RM30mil, which it would fund via internally generated funds and/or bank borrowings.

The company said the SIEG group offered UK and international curriculum which was highly demanded by parents.

“The private education sector is expected to see strong growth driven by economic development, increase in the number of expatriates in Malaysia, growth in the middle class and increasing number of parents who recognise the benefits of higher quality of education for their children,” it said.

GUH expects to complete the proposed purchase of the 25% stake in SIEG and the entire equity interest in Milan Diamond within two weeks.