Montinolas seal Roosevelt takeover for P808M
The Montinola-led Far Eastern University has sealed a deal to acquire an initial 80 percent of Roosevelt College Inc. for P808.48 million.
The share purchase agreement entered into by FEU and Roosevelt allows the former to increase its ownership in the latter to as much as 99.42 percent.
More than 140 shareholders of Roosevelt agreed to sell their shares at P3.422 per share.
Half of the P808.48 million was paid upon signing of the agreement.
An additional P253.39 million will be paid within 30 days from signing date, subject to completion of the various conditions to closing.
The balance of P150.85 million shall be placed inescrow with a bank to be identified by the parties for a period of three years to cover potential liabilities.
The acquisition is in line with FEU?s efforts to enlarge its presence in the education sector.
Roosevelt has five campuses located in Cubao, Marikina, Cainta, San Mateo and Rodriguez towns in Rizal privince.
It is a non-sectarian educational institution that offers primary, secondary and tertiary education services.
On the other hand, FEU, chaired by former Bank of the Philippine Islands president Aurelio Montinola III, has campuses in Manila, Makati and Quezon City and in Silang, Cavite.