PETALING JAYA: Information and communications technology firm Prestariang Bhd is venturing into higher education cloud-based markets domestically and regionally.
The company, via its unit Pretariang Capital Sdn Bhd, inked a subscription agreement with OpenLearnings Global Pte Ltd (OGPL) and the founder and grooup chief executive of OGPL Adam Maurice Brimo yesterday to buy up to five million new OGPL and 3.06 million convertible preference shares to invest in the cloud platform, according to Prestariang’s filings with the stock exchange.
The company is expected to fund the subscription via internally-generated funds, which will be wholly satisfied in cash.
To recap, EduCloud is an initiative of Prestariang, which was earlier announced on Jan 12, 2017.
Prestariang said the investment would allow it to leverage OGPL Group’s scalable cloud platform with over 900,000 users as well as work alongside OGPL Group to establish a beach-front for EduCloud.
“EduCloud is expected to further expand Prestariang’s earnings base, while OGPL Group represents a fast-track approach to realise synergy and efficiency quickly, as we both serve a similar customer base in the higher and vocational education sectors,” Prestariang said.
According to the filings, OGPL is a newly incorporated company in Singapore and as the date of the agreement has an issued share capital of one ordinary share of A$1.
And as part of internal restructuring exercise pursuant to the agreement, OGPL will own two wholly-owned subsidiaries in Australia and Malaysia – OpenLearnings Global Pty Ltd and OpenLearning Global (M) Sdn Bhd (OGMSB) – collectively referred to as the OGPL Group.
Maurice holds a significant stake in OGPL Group, which owned a leading-edge cloud-based software-as-a-service platform for learning management system and massive open online courses known as www.openlearning.com. OGPL Group has revenue share agreements with 66 higher educational and vocational institutions across four countries and over 900,000 students worldwide.
“Its intellectual property include an award winning, proprietary social learning platform and mobile application, which has been built from the ground up on solid educational foundations, as well as extensive knowledge, trade secrets and expertise in learning design, and educational theory.
“It has a strong operating presence in Malaysia and has secured an agreement with the Higher Education Ministry to set-up and operate the National MOOC Platform for Public Universities,” Prestaring added.
Meanwhile, Prestariang said the subscription is not expected to have any material effect on its consolidated earnings for the financial year ending Dec 31, 2017.
It is also not expected to impact the group’s gearing for the said financial year, nor affect its issued and paid-up share capital, and substantial shareholder’s shareholding.
Prestariang shares closed down one sen or 0.56% at RM1.77 yesterday.