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CVC Capital Partners-led consortium to acquire a 30 per cent stake in GEMS Education

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The deal will allow the exit by a consortium led by Fajr Capital including Tactical Opportunities funds managed by Blackstone Group and Bahrain’s Mumtalakat Holding.

Thursday 11, July 2019 BY KUDAKWASHE MUZORIWA

A consortium led by private equity firm CVC Capital Partners has agreed to acquire a 30 per cent stake from existing shareholders in GEMS Education.

GEMS Education stated that with the CVC Consortium’s transaction, the group will assume ownership of a further 14 private schools in Europe, through the acquisition of Bellevue Education, a leading school group headquartered in the UK.

The Dubai-based academic group has concurrently launched a refinancing plan that includes loans and bonds and both the transactions are expected to close by end of July.

The completion of the transaction will see Malaysian sovereign fund, Khazanah Nasional, retaining its per cent stake, while the Varkey family will remain the largest shareholder, GEMS said.

Dino Varkey, CEO, GEMS Education, said, “Investment by the CVC Funds marks the third time we have successfully collaborated with global institutional investors.”

The private equity deal comes after minority investors began exploring the sale of their combined stake following GEMS’ decision to shelve its London listing last year after authorities in Dubai unexpectedly froze tuition fees.

GEMS Education owns as well as operates 49 schools in the UAE and Qatar.

TAGS : CVC Capital Partners, Khazanah Nasional, Fajr Capital, Blackstone Group, Mumtalakat Holding

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