Private tertiary education companyAPIIT Lankahas been bought by BG Investments Ltd. from EkuitiNasionalBhd (Ekuinas), a Malaysian Government-linked private equity firm, and Expolanka Holdings Plc.
The sale was based on an enterprise value of Rs. 1.9 billion. Ekuinas' stake was sold for Malaysian Ringgit 41 million (or Rs. 1.76 billion). Asia Securities advised the sellers on this transaction.
“We are pleased to report that the divestment generated a gross internal rate return (IRR) of 17.5% and a money multiple of 2.2 times the capital invested. This will bring Ekuinas’ total realisation proceeds to more than RM2.7billion,” EkuitiNasional CEO Syed Yasir Arafat Syed AbdKadir said in a statement.
“Ekuinas’ decision to divest APIIT Lanka is in line with its investment strategy to crystallise its assets when the time is right, as well as finding the right partner for the assets," he added.
Expolanka Holdings' investment in APIIT has been stated at Rs. 99 million.
BG Investments is a Sri Lankan-based investor with exposure in industries such as financial services, marine, education, and healthcare. It has identified education as a high potential sector in Sri Lanka and wishes to expand its footprint in this sector through the acquisition.
“With BG Investments, we are confident that with their local knowledge, expertise, and resources, we see them as the right owners who will be able to take APIIT Lanka through their next growth phase,” Syed Yasir Arafat added.
Established in 2000, Asia Pacific Institution of Information Technology Lanka Ltd (APIIT Lanka) was an international collaboration between Asia Pacific University of Technology and Innovation (APIIT) in Malaysia and Expolanka Holdings PLC, with links to a wide range of reputable universities in the UK and Australia.
APIIT Lanka’s objective is to provide higher education of international standards to produce globally competitive graduates who will meet the demands of the modern society. Since its establishment, APIIT Lanka has produced close to 2,000 graduates.
“APIIT Lanka has been growing steadily which contributed to one of our key achievements which was the opening of a new satellite campus in Kandy. This gave APIIT Lanka the platform to scale the business by growing the number of programs offered and tapping into a new market,” Syed Yasir Arafat said.