Stadio teams up with Brimstone to buy Milpark Business School

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Stadio teams up with Brimstone to buy Milpark Business School

Published Date: 2017-10-16 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Stadio teams up with Brimstone to buy Milpark Business School

The private education group is looking for acquisitions to expand its student offering

Stadio and Brimstone Investments have joined up to buy private tertiary education group Milpark Education, owner of Milpark Business School, in a deal worth R320 million. The two companies are setting up a special purpose vehicle called Milpark SPV, which will be 70% owned by Stadio, while Brimstone will have an effective interest of 30%.

Milpark was established 20 years ago and has 18 key accredited higher education programmes, is accredited to offer tuition towards 15 further education and training qualifications and 18 registered learnerships. It has two teaching campuses in Cape Town and Johannesburg, but the majority of its programmes are offered through distance learning. It has about 17 000 students. Its flagship qualification is its Master of Business Administration degree, which Stadio says has been ranked number 1 amongst private providers of the MBA in South Africa for the past three years.

Stadio, which listed on the JSE two weeks ago, says the acquisition provides it with a wide variety of additional qualifications in the business and commerce faculty. It said in its pre-listing statement that it plans to acquire several additional programmes, including degrees, higher certificates and diplomas, so it can expand its offering to students. It's targeting schools leavers as well as working adults, through contact and distance learning. Along with its listing, Stadio announced a rights issue to raise R640 million, offering shareholders 57 new shares for every 100 held at R2.50 each.

Related article: Stadio marked higher as it debuts on the JSE

Brimstone says private higher education is an attractive investment. It announced a long-term strategic relationship with Stadio last month.

Stadio's shares added 3.8% on Friday to close at R6.80, while Brimstone's 'N' shares gained 2.5% to R12.50.



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