KUALA LUMPUR (Sept 20): Loss-making MAA Group Bhd has proposed to buy a 90% equity interest in Scholastic IB International Sdn Bhd (SIB) for RM27 million in cash.  

The vendors are Scholastic Ventures Sdn Bhd and PAC Edu KL Sdn Bhd, which hold 51% and 39% stakes in SIB. The remaining 10% stake is owned by the Johannians Leadership Foundation. 

In a filing with Bursa Malaysia, MAA said the proposed acquisition, via its wholly-owned subsidiary Edumaax, will enable the group to have a stable stream of income and profits. 

It will also accelerate the Practice Note 17 group’s expansion and growth in the education business segment, MAA said.  

SIB’s wholly-owned subsidiaries include St John International Edu Group Sdn Bhd (SJI) which offers lower secondary and upper secondary education, and AlfaAkademik Sdn Bhd which offers tuition classes for Cambridge lower secondary and O-level students.  

SIB and its wholly-owned units are collectively referred to as SJ Group.  

For the financial year ended Dec 31, 2018 (FY18), SJ Group recorded a consolidated profit after taxation of RM2.55 million and consolidated net assets of RM2.20 million. 

The proposed acquisition is expected to contribute positively to MAAG’s financial performance in the future.  

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the end of December 2019. 

MAA saw its net loss widen to RM8.23 million for the second quarter ended June 30, 2019 (2QFY19), compared with a net loss of RM1.16 million a year earlier, despite revenue rising 17.34% to RM47.91 million from RM40.83 million.

For the cumulative six-month period (1HFY19), MAA’s net loss narrowed to RM1.66 million from RM13.79 million in the previous corresponding period, while revenue rose 15.2% to RM92.16 million from RM80 million.  

MAA shares were last traded at 82 sen, giving a market capitalisation of RM224.16 million.