KUALA LUMPUR (June 21): Property developer and construction company Jiankun International Bhd has entered into a Memorandum of Understanding (MOU) to explore buying the owner and operator of a private college, known as Unifield International College, for RM13 million to venture into the education sector.

In a bourse filing on Wednesday (June 21), Jiankun said it inked the MOU on the same day with education provider Dermaga Utama Sdn Bhd (DUSB) for DUSB to consider selling Dermaga Science & Health Sdn Bhd (DSHSB), which owns the college, and to explore the possibility of appointing DUSB as the operator and manager of the business after the completion of the deal.

The purchase consideration of RM13 million is expected to be satisfied by a combination of 70% to be paid by cash, and the balance of 30% to be paid by ordinary shares in Jiankun.

The MOU shall remain in force until its termination by the parties, or a definitive agreement is entered into by the parties, which will then supersede the MOU, or the parties are unable to agree on the terms and conditions of a definitive agreement after 90 days from the date of the MOU, or after the extension date whereupon the parties will be relieved from all obligations under the MOU, save for the obligations expressed in the MOU to survive its termination.

The MOU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders' shareholdings of Jiankun for the financial year ending Dec 31, 2023.

The company also said in the filing that none of its directors or substantial shareholders and/or persons connected to them have any interest, direct or indirect, in the MOU.

Having considered all aspects of the MOU, Jiankun's board of directors is of the opinion that it is in the company's best interest, the filing read.

Jiankun's shares closed half a sen or 2.56% higher at 20 sen on Wednesday, giving it a market value of RM72.1 million.