Khazanah buys 3% stake in Dubai's education group GEMS Menasa

The sovereign wealth fund said in a statement that the article had selectively focused on a

KUALA LUMPUR: Khazanah Nasional Bhd has bought a 3% direct stake in Dubai's education group GEMS Menasa Holdings Ltd.

According to a statement posted on the Nasdaq Dubai exchange on Tuesday, GEMS Menasa's unit GEMS Menasa Cayman Ltd said the Malaysian strategic investment fund had acquired the stake from the Varkey Group.

The Varkey Group is the majority owner of GEMS.
 
“The investment adds to Khazanah’s existing indirect interest in GEMS, via its shareholding in Fajr Capital, the Dubai-based private equity investor that led the 2014 acquisition of a minority stake in GEMS by an investor consortium including Bahrain’s sovereign wealth fund, Mumtalakat and Blackstone,” said  GEMS Menasa.

It said Khazanah had purchased the existing shares in GEMS parent entity, GEMS MENASA Holdings Ltd from VG. 

Following the sale VG remains the largest shareholder in the company and it is committed to holding a majority controlling stake in GEMS. GEMS will receive no proceeds from the sale.

“The terms of the transaction have not been disclosed,” it said.

GEMS Education (MENASA) CEO Dino Varkey said: “This strategic transaction reinforces our relationship with a leading global sovereign wealth fund. 

“Khazanah has been indirectly invested in GEMS since 2014 and we are delighted that, having watched our progress over the last three and a half years, they have chosen to increase their exposure through this meaningful direct investment. 

“This is the second sovereign wealth fund to join us in our journey to deliver high quality education across our constituent markets. We are pleased that Khazanah shares our belief in the power of education to shape and improve lives,” he said.
 
GEMS recently announced its full year results for the year to Aug 31, 2017, with adjusted earnings before interest, tax, depreciation and amortisation of US$261.6mil and revenues of US$926.2mil.