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Vtron to purchase stake in Ke'er
Posted on Friday, 11 August 2017 10:39
Vtron Group is acquiring 70.0 per cent of kindergarten operator Beijing Ke'er Education Technology for CNY 385.00 million (USD 57.74 million) to expand further into the growing childhood education sector in China.
The sole seller is Ganzhou Gaoyu Equity Investment Partnership Enterprise, a Jiaxing Junzhong Asset managed fund invested by three individuals: Xiong Yixu, Li Xiang and Qi Lu.
Ke’er has appointed China Tong Cheng Assets Appraisal and Zhonghua Certified Public Accountants as advisors to the transaction, which remains subject to shareholders’ approval.
Founded in 1996, the target operates about 30 kindergartens in Beijing, Dalian, Nanjing, Guiyang and other major Chinese cities.
Listed on the Shenzhen SME Board, Vtron traditionally manufactures computer and video screen products, including liquid crystal display flat panels, light emitting diode displays and rear-projection video wall cubes.
The group, which was known as Vtron Technologies up until early this year, posted revenue of CNY 1.05 billion in the 12 months ended 31st December 2016, up 12.1 per cent on the CNY 937.15 million in the previous year.
Net profit for the period totalled CNY 182.23 million, compared to CNY 119.47 million in 2015.
The transaction follows a series of investments in the past two years by Vtron that targeted the early childhood education.
It announced two deals just a few months ago: its CNY 105.90 million agreement to purchase 70.0 per cent of kindergarten and childcare centre operator Inner Mongolia Dingqi Early Childhood Education Technology and its CNY 20.00 million transaction to snap up 18.2 per cent of online elementary education platform operator Shanghai Bijia Education Technology.
Similarly in 2015, Vtron successfully took over Beijing Golden Cradles Education Technology, another kindergarten operator, for CNY 858.27 million.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 48 announced or completed deals targeting elementary and secondary school operators worldwide in 2017 to date.
© Zephus Ltd