AIF Capital quits plan to acquire Raffles' OUC

Raffles remains optimistic about its plan with OUC despite AIF Capital's backing out of proposed 10% investment.

Raffles Education Corporation Limited, the largest private education provider in the Asia Pacific region, on Monday announced that AIF Capital Asia III, L.P (AIF Capital) has decided, in view of recent global economic and market conditions, not to proceed with the proposed acquisition of a 10% investment in the Group’s Oriental University City Limited (OUC). The proposed acquisition was previously announced on 30 April 2010 pursuant to the signing of a non-binding term sheet between RafflesEducationCorp and AIF Capital, according to a Raffles report.

Mr Chew Hua Seng, Chairman and CEO of RafflesEducationCorp, said, "Notwithstanding AIF Capital's decision, the Group is well poised, together with our strategic partners, to see through our plans for OUC and procure OUC's initial public listing by August 2013. The Group is also in a strong financial position to pursue new opportunities and further expand its businesses."

Over the last two years and notwithstanding the global financial crisis, the Group has continued to strengthen its balance sheet and has brought its debt position down.

As of 31 March 2010, its cash and cash equivalents stood at S$141.0 million with a net gearing ratio at a healthy 0.08X.

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