Paladin Capital’s South Africa-based private education services portfolio company Curro Holdings has been listed on the Johannesburg Stock Exchange as part of plans to raise $48 million (R322.4 million) in a share rights offer.
The company has been listed to enable the share rights offer to be conducted in a regulated environment. Paladin will retain its 76% stake. Curro is seeking the new capital to fund its expansion plans, which includes opening 40 new schools by 2020.
Paladin last year paid $7.7 million (R52 million) to raise its stake in the company to 76%, from the previous 50%.Curro has also previously received a $10.8million (R73 million) 10-year loan from the International Finance Corporation.
Curro provides private education to 5,500 pupils at its 12 schools in the Western Cape, Gauteng, Mpumalanga and Limpopo regions of South Africa. The company was founded in 1998, with 28 pupils in Durbanville, and targets children aged between 4years and18 years.
Curro ‘s profits in 2010 reached R5.2 million, a significant recovery from the R0.3million losses recorded in 2007.
Contributed by: Tom Minney