KUALA LUMPUR (Dec 2): MAA Group Bhd is acquiring an Italian company for €2.2 million (RM10.15 million) in a related party transaction.

In a Bursa Malaysia filing, MAA said its wholly owned subsidiary Edumaax Sdn Bhd has entered into an agreement with MAACA Labuan Ltd, Tunku Datuk Yaacob Khyra and Samuele Minotti for the proposed acquisition of Villa Castiglioni SRL (VC).

Tunku Yaacob, who is a director and shareholder of VC, is also the executive chairman of MAA. He also has indirect interests in VC via his interests in MAACA Labuan Ltd.

VC's principal business is in Milan, and the group owns a property known as Villa Castiglioni in Italy. There is an intention to convert the villa into a boarding school.

MAA said the acquisition would provide the group with an opportunity to build a stable stream of income and profits in the education business segment, and to enjoy the potential capital appreciation in the value of the property.

"In addition to the MAA Group's involvement in international school and tuition industry in Malaysia, the proposed acquisition will allow the group to penetrate into the buoyant global international school market," it said.

MAA's education sector consists of Imperium International College, St John's International School and Kasturi Academy, its 2022 annual report showed.

MAA's share price closed up 1.5 sen or 3.95% at 39.5 sen on Friday (Dec 2), giving the group a market capitalisation of RM104 million.

Year-to-date, the stock has depreciated 38%, from 64 sen on Jan 3.