Laureate Education Inc (NASDAQ:LAUR) agreed to sell its Brazilian operations to Ser Educacional in a deal valued at $724 million U.S.
The Baltimore-based company reported Sunday the transaction follows Laureate's announcements on Friday, regarding agreements to divest Walden University and its Chilean operations. All three divestitures are the result of Laureate's previously announced efforts to explore strategic alternatives for each of its businesses to unlock shareholder value.
Laureate operates 11 higher education institutions in Brazil. These institutions collectively enroll more than 267,000 students in technical, undergraduate and postgraduate programs.
Ser Educacional is a respected network of educational institutions in Brazil, united by a commitment to the personal and professional growth of all of its students.
The transaction value is approximately R$3.862 billion ($724 million U.S. at the current exchange rate and share value), including the assumption of indebtedness, net of cash (which, as of June 30, 2020, was $124.9 million U.S.). In the transaction, Laureate will receive R$1.70 billion in cash and 101,138,369 shares of Ser Educacional.
Upon the closing of the transaction, Laureate will own approximately 44% of the shares of Ser Educacional, which will be subject to certain voting restrictions. In connection with the transaction, Ser Educacional will seek to list American Depositary Shares on a U.S. securities exchange.
The transaction is targeted to close toward the end of 2021.
Shares gained 61 cents, or 4.6%, to $13.90
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