Malaysia’s Equinas sells APIIT for $180m in KV Asia-backed management buyout

Image taken from Ekuinas website.

Malaysia’s state-owned private equity firm Ekuiti Nasional Bhd (Ekuinas) has divested its entire stake in local education company APIIT Education Group for $180 million to a joint venture vehicle owned by its existing management team and private equity firm KV Asia Capital.

APIIT Group comprises Asia Pacific Schools (APS), Asia Pacific University of Technology & Innovation (APU) and Asia Pacific Institute of Information Technology (APIIT) that offers primary, secondary and tertiary education.

“APIIT Group was invested across two funds. With this divestment, it will allow Ekuinas to recoup its cost of investment and generate a positive blended Internal Rate of Return (IRR) of 22.3 per cent and money multiple of 1.6 times the capital invested, including dividends received,” Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir said in a statement issued on Tuesday.

Headquartered in Singapore and with offices in Malaysia and Indonesia, KV Asia Capital focuses on making equity investments in mid-sized companies across Southeast Asia. The PE firm counts Orange Valley Healthcare, Aalst Chocolate, TF Value-Mart and DXN Holdings among its portfolio firms.

“KV Asia Capital intends to work closely with management in their efforts to enhance student experience and outcomes and to grow the number of students,” it said in a separate announcement.

Ekuinas had invested in APIIT in 2011, buying a 51 per cent stake from Sapura Resources Bhd and in 2016 took over the remaining 49 per cent. Last year, APU launched its state-of-the-art campus in Technology Park Malaysia as part of a value creation plan for the group.

Also Read:

Malaysia: Ekuinas divests stake in Alliance Cosmetics to Navis for $15.45m

ChangedEdu to close 3-4 deals by end of summer, to invest $300m over next 4 years

Malaysia: Ekuinas pushes education porfolio, Ilmu’s IPO to another 6 to 12 months