–Strategically Strengthens Cooperation to Operate Preschool Centres under the MindChamps Brand in China–
HONG KONG — China First Capital Group Limited (“CFCG”; HKEx:1269) entered into a Joint Venture agreement on 15 February 2018 with Singapore’s MindChamps PreSchool Limited (“MindChamps PreSchool”) to establish a China Preschool Fund (the “Fund”), with its investment objective of establishing and acquiring preschools in the People’s Republic of China (the “PRC”).
Pursuant to the Agreement, the China Preschool Fund targets to raise an initial tranche of US$200 million. The Limited Partners of the China Preschool Fund will comprise third party investors and directly or indirectly owned companies of the Group and MindChamps PreSchool, and the General Partner will be a company owned by the Group and MindChamps PreSchool as to 50% each. While First Capital Asset Management Limited (a corporation licensed to carry out type 1, 4, 9 regulated activities under the SFC), will be appointed as the investment advisor to the Fund.
Pursuant to the Agreement, an Operation Company to be owned 51% by the Group and 49% by MindChamps PreSchool will serve as MindChamps PreSchool’s master franchisee in the PRC to facilitate, among others, the operation, training and upgrading of the newly established or acquired preschools under the “MindChamps” brand in the PRC.
MindChamps PreSchool is the largest operator and franchisor of premium range preschool centres in Singapore and is listed on the Main Board of Singapore Exchange Securities Trading Limited (CNE.SI). It has a global presence that includes premium preschools and enrichment centres in Singapore, Australia, the United Arab Emirates and the Philippines, and it is also expanding its preschool network to China, Vietnam and Myanmar. CFCG, holding 4.99% of the issued shares of MindChamps PreSchool, has been the cornerstone investor of MindChamps PreSchool since its initial public offering in Singapore in November 2017.
The establishment of the joint venture is expected to provide the Group with investment opportunities arising from the expansion of school network of MindChamps Preschool in the PRC; and the China Preschool Fund and the Operation Company will serve as a strategic platform of the Group’s education operation business in the PRC. This will enable CFCG to bring high quality education from Singapore into China, as well as fulfil the Group’s commitment of providing the best education from around the world to students in China.
Dr. Wilson Sea, Chairman and Executive Director of CFCG, said, “China First Capital Group has been looking all over the world for the best education solutions and we are very confident that MindChamps PreSchool can help elevate China’s preschool standards to a whole new level. We highly value the ties with MindChamps PreSchool and see the joint venture as an important strategic platform of the Group’s education operation in China. The Group is fully committed to working closely with MindChamps PreSchool on this latest joint endeavour and believes that the cooperation will reap long term benefits to the Group.”
Mr. David Chiem, Founder CEO and Executive Chairman of MindChamps PreSchool Ltd, said, “At the official Olympic Cultural Event ‘What Makes a Champion?’ Forum of the 2008 Beijing Olympics 10 years ago, Professor Snyder, who was leader of the research on the topic, came to the conclusion that the Champion Mindset can be learned. Since then, the professor and our team have integrated the Champion Mindset into our unique early childhood curriculum. Backed by solid research findings and successful implementation in Singapore, we are excited to now launch this breakthrough education model in China and are confident that it will make a difference in learning to children in China and the world at large.”