Malvern to acquire Singapore accountancy education provider

Education services provider Malvern International has entered into a sale and purchase agreement with the Institute of Singapore Chartered Accountants, it announced on Thursday, to acquire the entire issued share capital of SAA Global Education Centre for a total consideration of SGD 0.5m.

The AIM-traded firm said the consideration would be satisfied by the issue of 5,630,350 new ordinary shares of 5p each in Malvern, with completion of the sale and purchase agreement expected to take place on 7 November.

It said SAA-GE has been a subsidiary of ISCA, providing commercial private education.

SAA-GE has provided diploma, undergraduate, postgraduate and professional programmes in the accountancy, finance and business related disciplines for 30 years, Malvern explained, offering preparatory courses leading to ATTS, ACCA, FIA/CAT, ICAEW and Singapore Chartered Accountant qualification, as well as degrees from Plymouth University and the University of London in the UK.

“SAA-GE has a reputation for providing high-quality, industry-recognised programmes that have also attracted international students from Japan, China, Vietnam and the Philippines,” Malvern’s board said in its statement.

“It continues to achieve high pass-rates and produces top-performing students and prize-winners for the ACCA and FIA/CAT programmes annually.

“SAA-GE has a four-year EduTrust Certification issued by the Committee for Private Education Singapore.”

It currently has more than 1,000 students.

Malvern said the acquisition would provide it with “fresh opportunities” to reach and work with large local partners, with a substantial student base, as well as provide access to its “highly qualified” trainers and lecturers.

It said it would also “broaden and strengthen” Malvern's platform as an international hub for accountancy and finance education, adding to its existing and upcoming offerings in Malaysia and London.

For the financial year to 31 December 2016, SAA-GE reported a loss of SGD 1.8m on revenues of SGD 5.7m.

As at 31 December 2016, SAAGE had net liabilities of SGD 0.9m.

“We are delighted to have SAA-GE join the Malvern Group,” said Malvern International chairman Gopinath Pillai.

“This acquisition is in line with Malvern's international strategy announced in June 2017 and that is to focus its brand on a few key development skills, one of which is accounting and finance education.

“Looking forward we are both confident and excited at the opportunities this acquisition will bring.”