| Tue 3 Jul 2012, 14:00 | | Curro Holdings Limited - VOLUNTARY ANNOUNCEMENT: CURRO PIC AND OLD MUTUAL JOIN FORCES TO EXPAND QUALITY LOW-FEE SCHOOLING |
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COH
VOLUNTARY ANNOUNCEMENT: CURRO, PIC AND OLD MUTUAL JOIN FORCES TO EXPAND QUALITY LOW-FEE SCHOOLING
Curro Holdings Limited
Incorporated in the Republic of South Africa
Registration number: 1998/025801/06
Share code: COH
ISIN: ZAE000156253
(Curro or the Company)
VOLUNTARY ANNOUNCEMENT: CURRO, PIC AND OLD MUTUAL JOIN FORCES TO
EXPAND QUALITY LOW-FEE SCHOOLING
Curro is pleased to advise shareholders that it has embarked on a
joint venture with the Schools and Education Investment Impact Fund of
South Africa (IT3207/2011) to provide affordable, quality private
schooling to low-income families.
Old Mutual Investment Group SA (OMIGSA) and its investors, the
Public Investment Corporation (PIC) and Old Mutual Life Company of
South Africa, established the Schools and Education Investment Impact
Fund of South Africa (the OMIGSA Schools Fund) with the primary
focus of financing infrastructure and education-related requirements
for independent low-fee paying schools.
As set out in Curros pre-listing statement, Curro is firmly of the
view that the purpose of education is to empower every person with the
opportunity to achieve their potential as individuals and members of
society. Education is one of the cornerstones of society, providing
the main strategic thrust to long-term South African development.
The joint venture allows Curro, together with the OMIGSA Schools Fund
and their respective investors, to play a supportive role to
Government in addressing the educational needs of South Africa in the
lower income market and to put in motion the objectives set out in
Curros pre-listing statement.
The joint venture includes the incorporation of an operating company
that will operate schools, to be known as the Meridian Independent
Schools, and a property owning company, held 65% by Curro and 35% by
the OMIGSA Schools Fund, that will provide the school facilities and
premises for the schools, with Curro being appointed as the manager of
the schools. The Meridian Independent Schools will focus on providing
private schooling to students where the majority of parents earn less
than a defined threshhold, currently R200 000 (two hundred thousand
Rand) per annum.
The OMIGSA Schools Fund has made loan financing of up to R397.1
million and Curro has made junior debt facility of up to R42.9 million
available, subject to the fulfillment of certain conditions precedent,
for the development and operation of 11 Meridian Independent Schools
over the next seven year period.
The transactional agreements regulating the above matters were signed
by the parties today, 3 July 2012 and memoranda of incorporation
regulating the newly incorporated companies will be lodged at the
Companies and Intellectual Property Commission.
The Company and its directors are excited at the new prospects that
the joint venture will unlock for the Company, the OMIGSA Schools Fund
and their shareholders, and the important role that the Meridian
Independent Schools will play in providing affordable, quality
education and schooling facilities where needed most in our community.
Durbanville
3 July 2012
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Transaction Adviser to Curro
PSG Capital (Pty) Limited
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