Far Eastern University Inc. (FEU) is teaming up with United Laboratories Inc. Group (Unilab), the country’s largest pharmaceutical company owned by the Campos family to acquire a school in San Fernando, Pampanga.
FEU said in a disclosure to the stock exchange Wednesday its board of trustees authorized the company to enter into a shareholders agreement with MGHI Holdings Inc, a member of Unilab.
Under the agreement, FEU and MGHI will each invest up to P300 million in Higher Academia Inc. (HAI) for a total equity of P600 million.
HAI will then acquire will acquire the assets of Colegio de Sebastian-Pampanga Inc., a secondary and tertiary school in San Fernando, Pampanga.
“No definitive agreement has been signed pending finalization of the documentation, discussions and the conduct of due diligence,” FEU said.
FEU also reported that it posted a P73.09-million net loss in the first quarter of its fiscal year ending Aug. 31, 2022. This was a slight improvement from the P93.99-million net loss it incurred in the same period last year on better operating results from core school operations.
First-quarter results are usually the lowest due to the seasonality of tuition revenue recognition.
FEU said despite the weak first-quarter results, it is optimistic that it will sustain a healthy financial position and sound operating results for the school year 2023-2024, especially with an increase in group-wide student population in the first semester.
“On the overall economy, the group maintains a conservative outlook. With this, the management will continue to be prudent in the implementation of its operations, investment, and business continuity plans, both at the corporate and the academic levels, to mitigate any foreseen negative impacts on the overall operations,” FEU said.
FEU operates Far Eastern University in Manila and is the majority shareholder of East Asia Computer Center Inc., FEU Alabang Inc.; Far Eastern College Silang Inc., FEU High School Inc. and Roosevelt College Inc.
It also owns a 51-percent stake in Edustria Inc., a newly-incorporated senior high school in Batangas established and operated in partnership with the Technological Institute of the Philippines Inc., which owns the balance of 49 percent.