Business
Laureate Education To Sell Brazilian Operations to Ser Educacional
Strategic Review Process Achieves Positive Momentum; Transaction Follows Separate Agreements to Divest Walden University and Operations in Chile BALTIMORE,
About this update from Laureate Education, Inc.
[{"type":"text","content":"Strategic Review Process Achieves Positive Momentum; Transaction Follows Separate Agreements to Divest Walden University and Operations in Chile\n\n\nBALTIMORE, Sept. 13, 2020 /PRNewswire/ -- Laureate Education, Inc. (NASDAQ: LAUR) announced today that it has entered into a definitive agreement with Ser Educacional S.A. (B3: SEER3) for the sale of its Brazilian operations. \nThe transaction follows Laureate's announcements on Friday, September 11th 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. \nAgreement Signed to Sell Brazilian Operations\nLaureate operates 11 higher education institutions in Brazil. These institutions collectively enroll more than 267,000 students in technical, undergraduate and postgraduate programs. \nSer 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. \nCommenting on the transaction, President and Chief Executive Officer of Laureate, Eilif Serck-Hanssen, said, \"This transaction resulted from our exploration of strategic alternatives for each of Laureate's businesses. We are incredibly proud of our Brazilian institutions and their enduring impact on the lives of their students. They demonstrate the best of Laureate's commitment to deliver quality at scale, and we believe each of these institutions is well placed to continue to expand on Laureate's legacy in Brazil.\"\nThe transaction value is approximately R$3.862billion (US$724 million at the current exchange rate and share value), including the assumption of indebtedness, net of cash (which, as of June 30, 2020, was US$124.9 million). 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 (ADS) on a U.S. securities exchange. \nThe transaction is subject to certain closing conditions, including regulatory approval and the completion of the A...