Far Eastern University Inc. of the Montinola family said Wednesday it finalized a deal to acquire up to 99.42 percent of Roosevelt College Inc. for P1 billion.
FEU said in a disclosure to the stock exchange it signed a share purchase agreement with certain shareholders of Roosevelt College to initially acquire an 80-percent interest for P808 million.
The agreement came with an option for FEU to make further acquisitions to own up to 99.42 percent of the issued and outstanding capital of Roosevelt College, which would increase the value of the deal to P1 billion.
Roosevelt College is a non-sectarian educational institution formed in March 1949. It offers primary, secondary and tertiary education services. The school currently operates five campuses in Cainta, Rodriquez and San Mateo in Rizal province and in Marikina and Cubao, Quezon City in Metro Manila.
These campuses have a total student population of 5,000.
FEU said the acquisition price was reduced to P1 billion from the earlier value of P1.25 billion, after the company conducted due diligence.
Under the SPA, the corporation and more than 140 selling shareholders with a combined 80-percent stake in Roosevelt College agreed to sell their shares at P3,422.14 per share.
Half of the price will be paid within 30 days from signing, subject to completion of the various conditions. The remaining 50 percent will be placed in escrow with a bank for a period of three years to cover potential liabilities of Roosevelt College.
BDO Group acted as financial advisor and funder to the corporation on the transaction.
Meanwhile, heirs of certain shareholders, with 18.98 percent of the issued and outstanding capital stock of the company also signed the SPA and agreed to sell their inherited shares at the same purchase price within one year from signing of the agreement.
FEU is a co-educational, non-denominational institution providing quality education in the fields of engineering and information technology.
It has four campuses in Manila, Diliman, Cavite and Makati.
FEU recently broke ground for the future FEU-Alabang campus in Muntinlupa City.