27 March 2017, Singapore - 8I Holdings Limited (ASX: 8IH) ("8IH" or the "Company") is pleased to announce that the Company and its wholly owned subsidiary, 8I Education Pte. Ltd. ("8IE") have entered into a Share Swap Agreement with Mr. Seah Weiming, Dr. Daniel Kao and Ms. Ong Kai Ling, the founders of Financial Joy Institute Pte Ltd ("FJI"), to swap the remaining 49% equity interest of FJI with 2,917,888 8IH shares and 107,421 8IE shares ("Consideration Shares") worth S$2,200,000 and S$2,700,000 respectively (the "Acquisition").
FJI is a company incorporated in Singapore that provides financial and investment education through its main brand, Value Investing College ("VIC") in Singapore, Malaysia, Taiwan, Thailand, Myanmar, India and Vietnam, with expansion plans to South Africa, Australia, Philippines, Dubai, Japan and China.
8IH acquired 51% controlling interest of FJI on 29 June 2016 through a swap of 2,551,939 8IH shares (the "First Acquisition"). The First Acquisition has provided 8IH's Education Division access and growth to FJI's regional markets with additional trainers and course offerings. Taking into consideration FJI's performance since the First Acquisition, the management is convinced of the strategic value of FJI to the Company, and has decided to acquire the remaining 49% equity interest of FJI from its founders. Further to the Acquisition, Mr. Seah Weiming and Dr. Daniel Kao will be appointed as key management of 8IH's Education Division to continue the expansion of FJI's operations.
The Acquisition will be completed upon the issuance of the Consideration Shares. The Consideration Shares will be issued for nil cash consideration, in satisfaction of the acquisition of the remaining 49% equity interest in FJI. The issuance of the Consideration Shares will decrease 8IH's shareholdings in 8IE by 5% to 95%. Subsequent to the completion of the share swap, 8IE will own 100% equity interest of FJI.
Ms. Pauline Teo, CEO of 8I Education, commented, "We are very excited at the prospects of realising the synergies of both 8IE and FJI in terms of operational efficiencies and market reach. Since the First Acquisition, it was already apparent that this Acquisition will be a win-win situation for both 8IE and FJI as we grow 8IE business in breadth and depth. "