KUALA LUMPUR (March 9): Cahya Mata Sarawak Bhd's education unit CMS Education Sdn Bhd (CMSE) is forming a 30:70 joint venture with Ibraco Help Education Sdn Bhd (IHE) to set up a private school in Kuching, Sarawak.
"IHE has agreed for CMSE to participate in the said joint venture company, HELP Ibraco CMS Sdn Bhd, and in consideration, CMSE shall shift its current Tunku Putra School at Kasuma to the proposed new school building when it is ready," said Cahya Mata.
It added that CMSE and IHE will enter into a build and lease agreement with Ibraco Bhd, which will build the new school building on a 6-acre leasehold land which it owns in Kuching, Cahya Mata said in a filing today.
Cahya Mata said the joint venture will capitalise on HELP Education Services' capabilities in the education industry, and Ibraco's participation through the development of the new school building, which will be located in the wider Tabuan Jaya residential area.
"This partnership aims to position Tunku Putra-HELP International School as a school which delivers world-class education with world-class facilities at affordable fees to all who live and work in Sarawak," it added.
The new building, slated for completion by September 2019, has an estimated development cost of RM50 million, said Cahya Mata. Ibraco will fund the project through internally generated funds and bank borrowings, it added.
Shares of Cahya Mata dipped 6 sen or 1.45% to close at RM4.08, giving it a market capitalisation of RM4.38 billion. Shares of Ibraco Bhd dropped 10 sen or 13.25% to 65.5 sen, for a market capitalisation of RM325.15 million.