Malaysia's sovereign wealth fund acquires stake in GEMS

Khazanah becomes the second sovereign wealth fund to invest in GEMS Education, following Bahrain's in 2014
Khazanah Nasional Berhad, the strategist investment fund of the Malaysian government, has acquired in 3 percent stake in GEMS Education from majority owner the Varkey Group, the company announced on Tuesday.
By Bernd Debusmann Jr
Tue 02 Jan 2018 10:31 AM

Khazanah Nasional Berhad, the strategist investment fund of the Malaysian government, has acquired in 3 percent stake in GEMS Education from majority owner the Varkey Group, the company announced on Tuesday.

The investment adds to Khazanah’s existing indirect interest in GEMS through Fajr Capital, a Dubai-based private equity investor that led the 2014 acquisition of a minority stake in GEMS by a consortium of investors which included Bahrain’s sovereign wealth fund.

According to GEMS, the company will receive no proceeds from the sale, and Varkey Group remains the largest shareholder in the company and remains “committed” to holding a majority stake.

The terms of the transaction were not disclosed.

“This strategic transaction reinforces our relationship with a leading global sovereign wealth fund,” said GEMS CEO Dino Varkey.

“Khazanah has been indirectly invested in GEMS since 2014 and we are delighted that, having watched our progress over the last three and a half years, they have chosen to increase their exposure through this meaningful direct investment.

“This is the second sovereign wealth fund to join us in our journey to deliver high quality education across our constituent markets. We are pleased that Khazanah shares our belief in the power of education to shape and improve lives,” he added.

Recently, GEMS announced its full year results for the year to August 31, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $261 million and revenues of $926 million.

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