Wey Education PLC Update - Agreement on New Nigerian Venture (2489B)
September 19 2018 - 3:19AM
UK Regulatory
TIDMWEY
RNS Number : 2489B
Wey Education PLC
19 September 2018
WEY EDUCATION PLC
("Wey Education or the "Company")
Update re: agreement on new Nigerian Venture
Wey Education Plc (AIM: WEY) announces that it has now completed
the documentation contemplated in its announcement of 23 August
2018 relating to its expansion in Nigeria.
Nigeria
A new subsidiary company, Wey Education Nigeria Limited ("WNL")
has been incorporated in Nigeria.
WNL has entered into a technical agreement with City of
Knowledge Academy ("CKA") a co-educational secondary boarding
school in Ogun state, Nigeria, whereby CKA will provide various
services to WNL including provision of the relevant education
licenses to enable WNL to operate as an online educational
establishment in Nigeria. CKA has also agreed to establish a
learning centre at its boarding school.
In the initial stages WNL will concentrate on offering the
traditional British curriculum offered by Wey to Nigerian students
both for home study and also through a WNL learning centre to be
opened in Lagos. Over the next few months the parties will also
co-operate to convert all CKA's existing Nigerian curriculum onto
Wey's learning platform with a view to offering such online within
Nigeria and overseas during 2019.
CKA will receive a commission fee of 5% of WNL's turnover for
its services.
CKA is owned by Mrs Mosun Belo-Olusoga, a well-known business
woman in Nigeria with a banking career spanning three decades. She
currently serves as the chairman of Access Bank Plc which is the
fourth largest bank in Nigeria, ranked on balance sheet size, with
total assets of USD 12 billion and a market capitalisation of over
USD 800 million. Access Bank has over 9,000 employees, six million
customers and three hundred branches, including a branch in London.
In addition, Mrs Belo-Olusoga currently sits on the boards of
Premium Pension Limited, a licensed pension fund administrator,
regulated by the National Pension Commission in Nigeria with assets
under management of circa USD 1.5 billion.
It is Mrs Belo-Olusoga intention to subscribe for 20% of the
enlarged capital of WNL at par in due course. A further
announcement will be made when appropriate.
Separately WNL has entered into an operation and services
agreement with Sage Grey Limited, a financial services company in
Nigeria for the establishment of Wey Marketing Limited ("WML"). WML
will be wholly owned by Sage Grey and has been sub-contracted by
WNL to provide a range of operations and marketing services to WNL
in Nigeria including collection of tuition fees. WML will be paid a
performance related commission for its services.
Through the agreements with CKA and Sage Grey, WNL will need
very limited personnel in Nigeria and can concentrate on education
provision while delegating the services required in Nigeria to
local firms.
China Strategy
Documentation of our proposed joint venture agreement with
Starcube is progressing and a further announcement will be made in
due course.
Enquiries:
Wey Education Plc
David Massie (Executive Chairman) Tel: +44 (0) 207 518 9700
+44 (0) 778 595 7958
WH Ireland Limited
Mike Coe/Ed Allsopp (Corporate Finance) Tel: +44 (0) 117 945 3470
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END
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