By Carrie Chen
HONG KONG (Feb 21) -- Hong Kong-listed China First Capital Group said it entered a joint venture agreement with Singapore-listed MindChamps PreSchool, establishing a fund that will raise $200 million initially to set up and acquire preschools in China.
CFCG and MindChamps will each own a 50% stake in a company that will manage the fund, named China Preschool Fund, as its general partner. The targeted sum will be raised from the sale of limited partnership interests, the company said in a statement to Hong Kong stock exchange on Tuesday. The preschools will be operated under the "MindChamps" brand.
CFCG and MindChamps will also establish a new company to be MindChamps' master franchisee in China. CFCG will own 51% of that company, and MindChamps the remainder. MindChamps will receive licence fees from the company and royalties from the preschools.
A unit of CFCG currently owns a 4.99% interest in MindChamps.
- By Carrie Chen; email@example.com; +852 39605150
- Edited By V.Phani Kumar
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