Paramount Corporation Berhad has announced that its education arm entered into a conditional share sale and purchase agreement with XCL Education Malaysia Sdn Bhd, for the proposed disposal of all its remaining equity interests in PESB, SKK, and SK, for RM120 million.
Back in 2019, Paramount entered into a share sale and purchase agreement with the Purchaser and Character First Sdn Bhd for the disposal of its controlling equity interests namely 69.7% of the issued shares in PESB*, comprising 130,339,000 ordinary shares; 80% of the issued shares in SKK, comprising 800,000 ordinary shares; and 80% of the issued shares in SK, comprising 1,800,000 ordinary shares.
The First SPA was completed in 2020, and the total consideration of RM569,198,750.00 was duly received by Paramount from the Purchaser upon completion. The current deal is basically the second SPA which will hand over total equity interest to the purchaser.
SK is involved in the business of providing K-12 education services at the Sri KDU Schools (both private and international schools) in Kota Damansara, Selangor Darul Ehsan.
Paramount is disposing of the business as part of its plan to exit the education industry and focus on its core business of property development as well as explore new business opportunities in other industry sectors.
The Proposed Disposal will also enable it to unlock the value of its minority interests in the Subject Companies based on the Sale Consideration which is higher than the Put Option Sum
