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| Tanmiya |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28647 |
| Company name | Al Tanmiya Holding KSC |
| Country |
| MENA Region |  |
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| Sector | Colleges, Universities, and Professional Schools |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, EMENA |
| Status | Hold |
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| Date SPI disclosed | December 22, 2009 |
| Projected board date | January 23, 2010 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Educational Holding Group (“EDU”), an established listed education group in Kuwait, is restructuring its businesses with a view of bundling similar businesses, inducting new investors and approaching banks for future growth capital. In this context, EDU, as the Sponsor (the “Sponsor”) is spinning off its Technical and Vocational Education and Training (“TVET”) businesses under a focused company called Al Tanmiya with the view to consolidate its vocational training, human resources and consulting business to improve operational synergies and financial performance as well as provide focused approach to growth of these business segments. In this connection, EDU has invited other regional and international investors (including IFC) to participate in this private placement. |
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| Project sponsor and major shareholders of project company |
| EDU (the “Sponsor”) is the sole shareholder of Al Tanmiya at present and will remain the controlling shareholder of Al Tanmiya after the contributions of new investors (including IFC). EDU was established in 1982 and publicly listed since 1993 and currently has a diversified portfolio of educational businesses from schools, colleges, university, vocational education centers, in GCC, MENA and other emerging market countries. |
| Total project cost and amount and nature of IFC's investment |
Al Tanmiya is proposing to acquire the existing companies directly owned by EDU in GCC, China and India for a total cost of US$31.5m. The Company will further expand these acquired businesses and acquire new similar businesses for US$38.2m.
IFC is proposing to provide US$12m in equity and US$5m in A loan to Al Tanmiya for the proposed acquisitions and expansion program. Post new equity placement, EDU is expected to retain a controlling stake in the equity of Al Tanmiya. |
| Location of project and description of site |
Projects are in the following countries:
GCC
India
China |
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| Anticipated development impact of the project |
Provide access to high quality training and HR consulting services in emerging markets: Al Tanmiya is dedicated to implement international standards to improve the overall quality of service delivery to its clients.
Improve operational performance: Al Tanmiya is expected to apply industry best practices in the management of the acquired companies thereby improving the overall operational efficiency and profitability of its business.
Provide growth capital: Al Tanmiya is expected to provide growth capital for expansion of its businesses primarily through internal accruals, additional equity injection from existing shareholders or new investors and debt from banks, as appropriate
Increase employment opportunities: The Project will provide opportunities for trainers and skilled market professionals to find good employment opportunities within their countries. |
| IFC's expected development contribution |
Long-term financing: IFC’s investment is expected to provide long-term financing on reasonable terms, which is limited in MENA for capital investment in education/TVET projects, given it requires long maturity.
Positive signal: IFC’s equity investment in this Project will send a signal to regional and global investors regarding the profitably of TVET projects in MENA and Asia, which will be beneficial for Al Tanmiya during its equity raising exercise and also for a possible IPO in future.
Access to capital markets: IFC’s investment in equity of Al Tanmiya and its subsequent assistance to the Company to improve Al Tanmiya’s internal financial and operational systems, Corporate Governance and E&S framework will help Al Tanmiya to prepare for a successful Initial Public Offering.
Share IFC’s global education industry knowledge: IFC’s experience financing greenfield and expansion of TVET projects will allow the sharing of best global practices. This will assist Al Tanmiya in introducing operational and financial management practices in its acquisitions thereby further creating value.
Improved Corporate Governance standards: IFC involvement will assist Al Tanmiya in improving corporate governance standards in its subsidiaries. |
| Environmental and social issues - Category B |
| IFC's early review of this category B investment in an educational investment company, identified the following potential environmental and social issues, which will be analyzed in detail during appraisal: life, fire and safety; labor and working conditions; implementation of a corporate environmental, health and safety management system. Additional details may be found in the Environmental and Social Review Summary for this project, which is also available on IFC's website. |
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| For inquiries about the project, contact: |
Dr Badri AlTraiji
Chairman
Al Tanmiya Holding Company KSC
P O Box 27215, Safat 12133, Kuwait
Phone: +965 22240453; Facsimile: +965 22407048
Email: traijibz@edu.com.kw; Website: www.edu.com.kw |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Translated versions of the ESRS and ESAP will be available at:
Mr. Eugene Koshi
Al Tanmiya Holding Company
Hamad Towers, Tower B
Qebla Area
Kuwait
Tel : +965 22974847
Fax: +965 22974849 |
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