Vancouver, British Columbia (FSCwire) - CIBT Education Group Inc. (TSX: MBA,
OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to report that pursuant to the Company’s news release of January
24th, 2018, it has completed the buy-out of the former majority owner of the limited partnership that owned one of the
GEC® branded downtown Vancouver properties (the “Project”). As a result of a contemporaneous transaction, CIBT increased
its ownership interest, from 20% to 47%, in this GEC® branded project.
Total transaction value is approximately $57 million including closing costs, commision and professional
fees. CIBT subsidiaries are guarantors/covenantors for debt totaling $40 million in these transactions. As of October
12th, 2017, the value of this property was appraised at $65.92 million. It will continue to operate under the GEC® brand
and management.
“This transaction has proven our business model - as one of the largest private colleges in Canada complemented by
a fully integrated student housing education business - can create tremendous synergy,” commented Toby Chu, President, CEO, and
Chairman of CIBT Education Group. “The original limited partners in this project earned over a 130% return on invested capital
within 27 months and exited successfully. CIBT also benefited from this transaction significantly by increasing its limited
partnership interest from 20% to 47%. In addition, CIBT earned a profit of approximately $7 million from the exit
transaction, and a structuring fee of $2.4 million for organizing the new limited partnership's entry transaction.”
About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education and student housing investment companies in Canada
focused on the global education market since 1994. Listed on the Toronto Stock Exchange and U.S OTCQX International, CIBT
owns business and language colleges, student housing properties, recruitment centres and corporate offices at 43 locations in
Canada and abroad. Total annual enrollment for the group exceeds 15,000 students. Its education providers include
Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College and CIBT School of
Business. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language
training, and over 150 career, language and vocational programs. CIBT's property investments are held by Global Education
City Holdings Inc., an investment holding and management company focused on developing education related real estate such as
student hotels, serviced apartments and education super centres totalling over $600 million. CIBT also owns Global
Education Alliance (“GEA”) and Irix Design Group ("Irix Design"). GEA recruits international students for many elite
kindergartens, primary and secondary schools, colleges and universities in North America. Irix Design is a leading design
and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.cibt.net.
Toby Chu
Chairman, President and Chief Executive Officer
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net
To view the original release, please click here
Source: CIBT Education Group Inc. (TSX:MBA, OTCQX:MBAIF)
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