CIBT Completes Sale of Canadian Language School Subsidiaries for $13.5 Million
VANCOUVER, Canada--(BUSINESS WIRE)-- CIBT Education Group Inc. (TSX: MBA/U.S OTCQX: MBAIF) ("CIBT Group") is pleased to report that it has completed the sale of its subsidiaries King George International College & King George International Business College for $13.5 million. The purchase price was paid in cash and promissory note for $9.5 million on closing and $4 million six months from the closing date, both payments subject to certain adjustments.
"We are pleased with our return on investment from this transaction," commented Toby Chu, President and CEO, Vice Chairman of CIBT Education Group Inc. "With a significant cash position on hand, CIBT Group is well positioned to acquire additional schools in the K-12 and post-secondary sectors, and to develop a number of Education Super Centers involving over 500 student-hotel units designed to accommodate over 1,000 international students in the Greater Vancouver area. The estimated project size for these supercenters is approximately $350 million, with details to be announced shortly. These combined education/real-estate projects are designed to complement our education business operated through Sprott Shaw College (since 1903), Acsenda School of Management and CIBT School of Business (China) by providing a total solution to our students coming to study at our campuses in Canada."
About CIBT Education Group:
CIBT Education Group Inc. is an education management company focused on the global education market since 1994. Listed in Canada on the Toronto Stock Exchange and in the U.S on the OTCQX International, CIBT Group owns and operates a network of business, technical and language colleges in North America and Asia. CIBT Group offers cooperative joint programmes in 12 countries with campuses, recruitment offices and training centers enrolling over 5,000 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Acsenda School of Management, and CIBT School of Business China, and also through KGIC Education Centers in China through a master licensing arrangement with KGIC Canada. Through these subsidiaries, CIBT Group offers Western and Chinese accredited business and management degrees, programmes in college preparation, healthcare, hotel management and tourism, English language training, English Teacher Certifications, junior and high school preparation programmes for overseas study, and other career/vocational training. CIBT Group also owns Irix Design Group, a leading design and advertising company based in Vancouver, Canada, Global Career Center ("GCC"), and Global Education Alliance ("GEA"). GCC is a job placement call center located in the Philippines dedicated to providing employment services to CIBT Group graduates for free throughout their careers. GEA is the premier solution for international students wishing to enter elite kindergarten, primary, secondary schools and universities in North America. Visit us online at www.cibt.net.
On behalf of the Board of Directors,
Some statements in this news release contain forward-looking information (the "forward-looking statements") about CIBT Education Group Inc. ("CIBT Group") and its future plans. Forward-looking statements are statements that are not historical facts. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause the company's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. With respect to the statement in this news release as to the future acquisitions and the development of Education Super Centers, these risks, uncertainties and other factors include, without limitation, uncertainty as to the company's ability to achieve the goals and satisfy the assumptions of management and general economic factors and other factors that may be beyond the control of the company. Forward-looking statements are based on the beliefs, opinions and expectations of the company's management at the time they are made, and CIBT Group does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.
KEYWORDS: North America Canada
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