VANCOUVER, BC / ACCESSWIRE / August 24, 2020 / CIBT Education Group Inc. (TSX:MBA)(OTCQX:MBAIF) ("CIBT" or the "Company") is pleased to announce the commencement of a review process to explore opportunities to enhance shareholder value.
The objective of this undertaking is to evaluate opportunities to unlock the value of its wholly-owned education-real estate subsidiary, Global Education City Holdings Inc. ("Global Holdings"), by potentially spinning it off as a separately listed entity on a recognized North American stock exchange while seeking strategic funding opportunities globally.
To assist with the review, CIBT has retained advisors in the United States, Asia and elsewhere to assist it with identifying a value-enhancing transaction for Global Holdings.
CIBT is uniquely positioned as a leader in the Canadian education and student housing sectors. Since beginning the student housing division in 2015, the portfolio of assets held by various limited partnerships controlled by CIBT has grown to a total of ten GEC® branded properties that are currently operational or under construction. As of May 31st, 2020, the market value of the GEC® portfolio appraised by third-party valuators was approximately C$580M. Further, the portfolio value (including development budgets) exceeds approximately C$1.4 billion.
"As a publically traded company, our objective has always been to increase the value of our company by continuing to drive growth and assess our underlying business for value-enhancing alternatives," said Toby Chu, Chairman and CEO of CIBT. "Our student housing subsidiary, Global Holdings, has developed into a leader in the Canadian market in the last several years, and we are ready to begin exploring alternatives to maximize the value of this asset, including the possibility of a listing it on North American stock exchange."
"In addition, over the past year, we have seen a shift in the global political environment in many Asian countries," continued Toby Chu. "This has led to an exodus of capital and a lack of available investment opportunities for real estate assets in Canada. We at CIBT believe we are well-positioned to offer a publically traded platform to many of these investors that are looking for a safe and reliable alternative method to invest in the Canadian student housing sector. Further, we believe the possibility of an additional exchange listing will provide many of these investors with a direct way of accessing this market."
The Company has not committed to any specific strategic alternative at this time, and there can be no assurance that the evaluation of strategic alternatives will result in any transaction or change in strategy.
About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education, and student housing investment companies in Canada focused on the domestic and the global education market since 1994. CIBT owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 45 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College and CIBT School of Business. Through these schools, CIBT offers over 150 educational programs in healthcare, business management, e-commerce, hotel management and language training. The total annual enrollment for the group exceeds 12,000 students. CIBT owns Global Education City Holdings Inc. ("Global Holdings"), an investment holding and development company focused on education-related real estates such as student-centric rental apartments, hotels and education super-centres. Global Holdings, under the GEC® brand, provides accommodation service to 72 schools in Metro Vancouver, serving 1,500 students from 77 countries. The total portfolio and development budget under the GEC® brand exceeds C$1.4 billion. CIBT also owns Global Education Alliance ("GEA") and Irix Design Group ("Irix Design"). GEA recruits international students on behalf of many elite kindergartens, primary and secondary schools, colleges and universities in North America. Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.cibt.net.
Toby Chu
Chairman, President & CEO
CIBT Education Group, Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS
Some statements in this news release constitute forward-looking statements under applicable securities laws. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, those statements related to CIBT potentially spinning off Global Holdings as a separately listed entity on a recognized North American stock exchange while CIBT seeks strategic funding opportunities globally, the potential impact of such a transaction on shareholder value for shareholders of CIBT and CIBT's belief that it through Global Holdings is well-positioned to serve as a publicly traded platform for the Canadian student housing sector. The forward-looking statements are subject to various risks, uncertainties and other factors that could cause CIBT's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. Such risks, uncertainties and other factors are identified in CIBT's filings with the Canadian regulatory authorities and such filings are publicly available on SEDAR. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT's management at the time they are made, and CIBT does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.
SOURCE: CIBT Education Group Inc.
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