LISTED educational institution Far Eastern University (FEU) said its board of trustees had cleared a shareholders’ agreement with MGHI Holdings, Inc. to invest in a school in Pampanga.
In a regulatory filing on Wednesday, the university said the agreement should stipulate that MGHI and FEU would each invest up to P300 million in Higher Academia, Inc. (HAI) for a total equity investment amount of P600 million.
In turn, HAI would acquire the assets of Colegio de Sebastian-Pampanga, Inc., which is a secondary and tertiary school located in San Fernando, Pampanga.
MGHI Holdings is a member of the United Laboratories, Inc. group, more commonly known as Unilab, which is engaged in the production of healthcare products and medicines.
Meanwhile, FEU said the shareholders’ agreement is also envisioned to contain share transfer restrictions, management, and governance provisions, and termination, dissolution, buy-out mechanisms upon the occurrence of “certain trigger events.”
FEU disclosed that no agreement has been signed yet, and would make the necessary disclosures if there are any updates.
“No definitive agreement has been signed pending finalization of the documentation, discussions, and the conduct of due diligence. We will make the necessary disclosures regarding the project as soon as further information becomes available,” FEU said.
FEU managed to narrow its attributable net loss in the first quarter ending August to P73.09 million from the P93.99-million loss a year ago.
The company’s revenues jumped 35% to P568.64 million from P421.95 million.
On Wednesday, shares of FEU at the local bourse fell P19 or 3.23% to P570 apiece. — Revin Mikhael D. Ochave