Pembury to pay in shares for Opti-Baby

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Pembury to pay in shares for Opti-Baby

Published Date: 2018-12-05 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Pembury to pay in shares for Opti-Baby

The private education and retirement village group is in talks to buy pre-school network Opti-Baby and will settle the deal in shares.

Pembury Lifestyle Group is talking on a new shareholder as it expands into the pre-school education market.

In a cautionary announcement yesterday, the private education and retirement village group said it was in talks to buy Opti-Baby & Kids from investment group ASO Capital in return for shares. Opti-Baby is a network of 12 pre-school daycare facilities in Johannesburg and Pretoria specialising in early childhood development. The deal includes the intellectual property developed to manage Opti-Baby and the five properties owned by BVI 1528 and occupied by Opti-Baby.

Pembury said ASO would take on an active management role at the group.

In its interims results for the six months to end-June, the group reported a 151% rise in revenue as it grew pupil numbers by 49% and increased its campuses from 7 to 11. It said its schools division had turned profitable but it reported an increased headline loss per share of 1.51c from 0.81c due to a higher number of shares in issue. It also said that corrective action taken earlier in the year had resulted in a big improvement in the accounting and control environment, which had previously hindered the company.

Pembury's shares fell 28.6% to 10c yesterday. The announcement was made shortly after the close of trade.





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