Wall Street English Vietnam has officially fallen into the hands of Myanmar Strategic Holdings (MSH) after reporting a net unaudited deficit of $1.4 million for the past fiscal year.
|In the last financial year, Wall Street English Vietnam racked up a net loss of $1.4 million |
MSH, the operator of English centre ELT, has just announced the acquisition of the Wall Street English brand in Vietnam, according to DealStreetAsia. Specifically, Wall Street English Vietnam will keep operating under the franchising agreement with Wall Street English International for the next 10 years. Moreover, MSH is considering to pay for the deal in cash.
As of this April, Wall Street English Vietnam enrolled more than 6,000 students in seven centres in the southern part of the nation. Right after the fiscal year ended on April 30, 2020, its unaudited revenue was $13.8 million with a net loss of $1.4 million.
To take over the English centre chain, MSH mobilised about $6 million from the Belgium-based Verlinvest SA and MACAN Pte., Ltd. (MSH’s biggest shareholder). Besides, MSH will issue 200,000 ordinary shares to A-Star Education Holdings – a subsidiary of Verlinvest – and 100,000 stocks to MACAN at the price of $20 per share. The transaction will be performed in two rounds and finished within this July. If the deal succeeds, MACAN will hold 34.6 per cent of MSH’s capital and A-Star Education Holding will own another 7.2 per cent.
The proceeds from the sales will be used to maintain the operations of Wall Street English Vietnam and feed its expansion plan as well as rally the liquidation of the MSH stocks.
Roberto Italia, managing director of Verlinvest, said that as a long-term investor at MSH, both Verlinvest and MSH are targeting emerging markets such as India, Indonesia, and Vietnam.