Shareholders approved Sale and Leaseback of SEGi’s Kota Damansara Campus at EGM

SEG International Bhd. Board of Directors at the EGM


“The sale and leaseback will allow SEGi to focus on its core business of education and training,” Dato’ Clement Hii, CEO.

14 November 2007

SEG International Bhd, principally engaged in the provision of educational and training services, announced that the shareholders at its Extraordinary General Meeting (“EGM”) today has approved the sale and leaseback of SEGi College flagship campus at Kota Damansara.

Under the terms of the transaction, SEGi Group will sell the land and building of its Kota Damansara campus for RM145million and lease back the campus for 10 years with an option to extend for a further period of 5 years. This transaction is subject to the approval of the Securities Commission.

The Proposed Disposal will enable SEGi Group to unlock its capital resources from being tied up in long term assets and allow the Group to better focus on its core business activities of providing educational and training services.

The flagship campus which began operations in June this year has a capacity of 12,000 students. With this additional capacity, the Group strongly believes it will be able to double its current student population of 15,500. As a full fledged campus, the Group foresees a growth in the international student population.

The transaction will not change SEGi’s operations or programme offerings but will enhance the company’s cash position and allow it to refocus its business activities from real estate to providing better education and training services. Plans to further enhance facilities and equipment for students to gain a holistic learning environment while providing new and in demand educational programmes are in the pipeline. 

In addition, the proceeds from the Proposed Disposal will mainly be utilised to partially offset the SEGi Group’s bank borrowings resulting in interest savings in the future, and reduction of its gearing.

Further to that, the Proposed Disposal will provide SEGi with the opportunity to realise the Property close to its fair market value whilst retaining the productive use of the flagship campus by way of a leaseback arrangement.

The Proposed Leaseback will ensure that the existing usage and operations at the Property will not be disrupted pursuant to the Proposed Disposal and the Property will be maintained as the main campus of SEGi Group by way of the leaseback arrangement with CIMB Trustee.

This arrangement is favourable to SEGi Group as the building is built according to its specifications and requirements of a world class learning institution.

About SEGi Group of Colleges

SEGi Group of Colleges since 1977 have provided recognised education which have earned them a mark of quality in the private education industry. As one of the leading private higher education and training providers in Malaysia, the Group has in total produced 300 First Class Honours graduates of universities worldwide. 

SEGi currently serves over 15,500 students through its 6 major campuses located in the Klang Valley, Penang and Kuching, Sarawak. The group offers academic, professional and skills training, as well as job placement consultancy.

SEGi offers a wide range of recognised 3+0 degree, diploma and professional certification programmes in the areas of business and accountancy, engineering and information technology, creative arts and design, education and social sciences, nursing, and hotel management and tourism. American Degree Program is also offered through the SEGi School of Graduate Studies.

One of SEGi’s advantages is its consortium of global partners such as the University of Sheffield, University of Abertay Dundee, University of Greenwich, University of Sunderland, University of Southern Queensland, and Upper Iowa University. The Group has also formed strong partnerships with professional certification bodies of ACCA, CIMA, CIM, ICSA and LCCI.

For further information, visit www.segi.edu.my