8I Holdings Ltd (ASX:8IH), a financial education seminar operator with an investment business in Singapore, will acquire 51% equity interest in Financial Joy Institute Pte Ltd (FJI) through 8IH’s private equity division.
The consideration for the share swap agreement will be SGD$2.04 million (A$2.03 million) payable in 8IH shares.
8IH offers financial education focusing on value investing techniques through the ‘Millionaire Investor Program’ seminars.
FJI operates in a similar vertical, conducting its signature ‘Value Investing Bootcamps’ in Singapore, Malaysia, Taiwan, Thailand, Myanmar, India and Vietnam, with expansion plans to South Africa, Australia, Philippines, Dubai, Japan and China.
The acquisition of FJI will provide 8IH’s education division access and growth to regional markets with more trainers and course offerings.
Additionally, 8IH aims to invest in undervalued private businesses with growth potential, not unlike the business acquired does with a value investing pitch.
Earlier this month, 8IH invested 49.99% in a Malaysian based business engaged in the wholesale and retail sale of power tools, for RM3.8 million (A$1.28 million).
8IH generated SGD22 million (A$22 million) in revenue and other income for the half year ended 30 September 2015 earning a net profit after tax of SGD15 million (A$15 million).
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