By NISHA RAMCHANDANI
RAFFLES Education Corp's subsidiary, Raffles K12, has accepted a letter of offer to acquire a piece of land in Johor Baru for some RM76.5 million (S$31.2 million) in its bid to expand into the international school business.
'In line with the company's expansion plans and strategic directions to expand into the international school business, the company intends to acquire the land to construct and develop an American system school in Johor Baru, Malaysia, catering to students from Kindergarten to Year 12,' Raffles Education said in a filing to the Singapore Exchange.
The land, which spans about 46.22 acres (18.7ha), is being transferred to vendor Education@Iskandar. The land is currently registered in the name of Iskandar Investment, Education@Iskandar's holding company.
The acquisition will be funded through a combination of bank borrowings and internal resources. A deposit of about RM1.53 million - or 2 per cent of the purchase price - is payable to Education@Iskandar on acceptance of the offer letter.
When the sale and purchase agreement is executed, a balance deposit of around RM6.12 million or 8 per cent of the purchase price is payable. The total amount is to be paid over five years from the date of the agreement.
According to the offer letter, the proposed acquisition is dependent on two terms - that a sale and purchase agreement is executed within 90 days from the date of acceptance of the offer letter or such other date agreed upon in writing between the parties as well as the successful transfer and registration of the land to Education@Iskandar.
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