Malaysia's Khazanah Acquires Three Pct Stake In Dubai's GEMS Menasa

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KUALA LUMPUR, Jan 3 (Bernama) – Malaysian government's strategic investment fund, Khazanah Nasional Bhd has acquired a three per cent stake in Dubai’s education group GEMS Menasa Holdings Ltd.

In a statement to Nasdaq Dubai on Tuesday, GEMS Menasa's unit, GEMS Menasa Cayman Ltd (GEMS) said the stake was acquired from Varkey Group, the majority owner of GEMS.

"The investment adds to Khazanah’s existing indirect interest in GEMS, via its shareholding in Fajr Capital, the Dubai-based private equity investor that led the 2014 acquisition of a minority stake in GEMS by an investor consortium, including Bahrain’s sovereign wealth fund Mumtalakat and Blackstone," it said.

GEMS said Khazanah's investment was structured as a purchase of existing shares in its parent entity, GEMS MENASA Holdings Ltd, from VG.

"Following the sale, VG remains the largest shareholder in the company and committed to holding a majority controlling stake in GEMS.

"GEMS will receive no proceeds from the sale," it said.

GEMS Education (MENASA) Chief Executive Officer Dino Varkey said Khazanah had been indirectly investing in GEMS since 2014 and this strategic transaction reinforced its relationship with a leading global sovereign wealth fund.

GEMS recently announced its full year results for the year to Aug 31, 2017, with adjusted earnings before interest, tax, depreciation and amortisation of US$261.6 million and revenues of US$926.2 million.

-- BERNAMA