Aptech to unlock value of Chinese joint venture Aptech Baida Jade Bird Company
19 Mar 2008
Learning solutions firm Aptech Ltd. today announced its intention to unlock value of its 50:50 joint venture in China by creating a holding company with its Chinese partner's assets and those of the joint venture, and subsequently listing the holding company in an international exchange.
Aptech has had a joint venture with Chinese company Jade Bird since 1999, and the joint entity is known as Aptech Baida Jade Bird Company. The ''Baida'' stands for Beijing University, also called Baida, which has a stake in Jade Park. The university tag lends the learning company additional credibility among Chinese students, academia and industry.
Aptech said that its board had received an offer from the Chinese partner, ''whereby both the JV partners will have full alignment of equity interest in the new holding company''. After the completion of the transformation, Aptech would hold 22 per cent in the new entity as opposed to the 50 per cent it currently holds in the joint venture, which it feels will represent a better equity valuation.
Aptech feels that the Chinese joint venture in its present form is unsuitable for an international listing, but is confident that the new holding company would prove otherwise. The board believes that accepting the offer is in the best interest of the company and its shareholders and has agreed to proceed with the offer, it added.
The proposal is subject to all necessary permissions and approvals in relevant jurisdictions, before which Aptech will continue to hold the 50 per cent interest in the existing joint venture. Celebrated investor Rakesh Jhunjhunwala heads the Aptech board.
