Quick take: Paramount rises 5.7% on disposal of education business

KUALA LUMPUR: Paramount Corp Bhd rose 5.7% in early trade Thursday after the group announced its plan to dispose of its education business for RM540.50mil cash.

The property-education group rose 5.77%, or 12 sen to RM2.20, making it one of the top gainers on Bursa Malaysia. The counter has gained more than 12.7% in the past one year.

Paramount announced that it was selling its equity interests in Paramount Education Sdn Bhd, Paramount Education (Klang) Sdn Bhd and Sri KDU Sdn Bhd (target companies) for cash consideration of RM540.50mil.

The stakes are 69.7% interest in Paramount Education Sdn Bhd for RM21mil, 80% in Paramount Education (Klang) for RM21mil and 80% in Sri KDU for RM385mil.

Paramount said the indicative disposal consideration was based on the earnings before interest, tax, depreciation and amortisation (Ebitda) of the target companies and REAL Education for the FYE 31 Dec 2018 of RM53.8mil and multiplied by an agreed multiple of 16.0 times.

Tunku Ali Redhauddin is chairman of Marlborough College, Malaysia, founding trustee and chairman of Teach for Malaysia, and pro-chancellor at Universiti Sains Islam Malaysia.

In April, Paramount announced a dividend of six sen per share, payable on July 4. The ex-date was on June 19 and the entitlement date is June 20.

Source: TheStar