Far Eastern University Inc. (FEU) on Wednesday said it was able to buy out 80 percent of the equity of Roosevelt College for P808.48 million under a new deal.
In a disclosure to the Philippine Stock Exchange on Wednesday, FEU said 140 shareholders of Roosevelt agreed to sell.
FEU intends to acquire up to 99.42 percent of Roosevelt College at P3,422.14 per share.
The selling shareholders include Roosevelt College president Romeo Dela Paz and board of trustees Leodegario Cruz and Dante Carlos.
FEU was able to lower Roosevelt’s valuation from an earlier purchase price of P1.25 billion.
“Heirs of certain shareholders of record, representing around 18.98 percent of the issued and outstanding capital… likewise signed the share purchase agreement… by virtue of which they agree to sell their inherited shares at the same purchase price per share and terms… within one year from 12 April 2016,” FEU said.
Half of the purchase price will be paid upon signing the agreement. An additional P253.39 million will be paid within 30 days after the signing date.
The balance will be placed in an escrow account for three years to cover the potential liabilities of Roosevelt College.
The BDO Group was hired as financial advisor and fund source of FEU for the transaction.
Roosevelt College is a non-sectarian school incorporated in March 1946. It offers elementary education up to graduate school with five campuses in Quezon City, Marikina, Cainta, Rodriguez and San Mateo.
It also owns RC Educational Enterprises Corp., Roosevelt College Foundation Center for
Teacher Education, and Roosevelt College Scholarship Foundation.
“As part of the transaction, FEU will likewise gain control of the said corporations,” the company said.
FEU comprises different institutes that offer various courses. In 2010, FEU established the FEU Makati campus which offers masteral programs in business administration and baccalaureate programs in accountancy, accounting technology, information technology and business administration.