KUALA LUMPUR (January 19): Berjaya Corp Bhd (BCorp) has offered to sell its 71.73% stake in Berjaya Higher Education Sdn Bhd, which owns Berjaya University College (BUC), to Nanyang International Education Group Sdn Bhd.
In a statement, BCorp said its wholly-owned subsidiary Berjaya Group Bhd had signed an agreement with Nanyang for the proposed divestiture.
However, the group did not indicate the transfer value.
Nanyang was incorporated by its majority shareholder, Krirk International Education Holding Co Ltd, to invest in the education sector in Malaysia.
Krirk was incorporated in Thailand and is primarily involved in education businesses. It owns and manages Krirk University, a university in Thailand.
The BUC transaction, which awaits approval from the Ministry of Higher Education, is expected to be finalized by June 2022, BCorp said.
BCorp group chief executive Jalil Rasheed said the divestiture “puts rubber on the road” in terms of the group’s pledged plans.
“As outlined in our transformation strategy, BCorp will divest some of its non-core areas so that we can focus on our core businesses. While bittersweet, we are pleased that BUC is in Krirk’s good hands.
“We believe they will continue to create opportunities and produce capable, skilled and professional graduates who will contribute to Malaysia,” Jalil added.
BCorp had announced the transformation strategy in June last year to focus on five key areas as it strives to become a global consumer group. Part of this strategy included divestments in business areas that no longer fell under this classification.
“We are quietly excited as after some delays caused by the pandemic, we are seeing the results of our efforts in terms of divestments. Going forward, we expect to follow through on plan,” Jalil said.
Meanwhile, Krirk chairman Dr Krasae Chanawongse said he believes BUC is the right fit for the Thai group as it expands its footprint in Malaysia.
“We look forward to continuing Berjaya’s legacy and taking it to the next level,” he said.
BCorp’s share price closed Wednesday’s session unchanged at 24.5 sen, giving it a market cap of RM1.33 billion.