(Yicai Global) June 22 -- China’s Maple Leaf Educational Systems will buy Singapore’s Star Readers for SGD680 million (USD487 million) in cash to fortify its market position in the island city-state, enhance its international business and enrich its income sources.

The company, which is based in Dalian in Northeast China, and its indirectly wholly-owned Maple Leaf CIS Holdings unit penned an agreement with the local seller Rainbow Readers, the Chinese firm announced today.

Star Readers is the sole shareholder of Singapore’s Canadian International School and its operator. CIS is a leading private education institution and one of Singapore’s largest high-end for-profit international educational institutions, based on revenue and student rolls.

Rainbow Readers is Star Readers’ sole shareholder. Star Readers will become Maple Leaf Educational Systems’ indirect subsidiary after the deal closes.

The buyout of Star Readers will help Maple Leaf Educational Systems extend its business to alluring international schools in Southeast Asia, which conforms to its sixth five-year plan, the announcement said, noting CIS will serve as a solid and steady platform for the firm to seek further expansion and growth in the region.

Rainbow Readers posted SGD16 million in profit after tax in 2018 and SGD20.6 million last year.

The agreement will be executed per the preconditions that CIS’ leasing agreement with the lessor Singaporean government is approved by that same authority and Maple Leaf Educational Systems’ general meeting of shareholders.

Maple Leaf Educational Systems’ stock [HKG:1317] wound up the morning up 5.69 percent at HKD2.13 (27 US cents) after opening 5.69 percent higher.

Editor: Ben Armour