GEMS Education Seeks $500m Cash Injection
The UAE's largest private education provider, GEMS Education, is selling up to 33 percent of the company in a bid to raise $500m, according to Arabian Business in an article published today.
A journalist at the title has seen a document prepared by Credit Suisse which values the group at between $1.5b to $2.5bn. GEMS Education has, according to the article, appointed Credit Suisse to raise a total of $500m in return for equity.
It is understood that a large chunk of any funds raised would be used to pay off the company’s existing loans with the Abraaj Group.
In 2007, Abraaj took a 25 percent stake in the group, though five years later it was converted into loans.
The document also specifies that new funds will be used as extra working capital to fund expansion, and a proportion will be released back to the Varkey family which owns the company.
GEMS currently operates close to 100 schools in 19 countries, serving 147,000 students from 151 countries. It employs 11,000 staff, and is planning to increase its presence to 50 countries within the next three years.
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