STI allots P400 M for schools acquisition

MANILA, Philippines - Listed education firm STI Education Systems Holdings Inc. has allotted almost P400 million for its schools acquisition program.

The company continues to expand its own portfolio with the groundbreaking of two new schools.

In a disclosure, STI Holdings said its board of directors approved the allocation of P390 million from the proceeds of a recent share sale “for the acquisition of an existing school and the corresponding revision of the company’s work program to reflect this allotment.”

In November, STI Holdings raised P2.36 billion through a follow-on offering. Businessman Eusebio Tanco consolidated all his education assets — the STI chain of schools, a 40 percent stake in Philippine Women’s University (PWU) and iAcademy – under STI Holdings, and a 20-percent interest in STI Investments, which holds Tanco’s strategic investment in Philplans, a leading pre-need savings program with plans dedicated to education, and Philcare.

Tanco said earlier that the acquisition would allow STI to offer accounting, hotel and restaurant management, and tourism courses that are enjoying brisk demand.

Pending the completion of acquisitions, STI Holdings continues to expand its portfolio south of Metro Manila.

Late last week, STI Holdings broke ground for the STI College-Calamba in Laguna and STI College-Las Piñas.

“These are key developments for STI. The STI Academic Centers in Calamba and Las Piñas will be developed to rank among the most modern education establishments in the country,” said STI president and CEO Monico V. Jacob.

The four-story STI Academic Center Calamba would rise on a 6,200-square-meter (sqm) property along national highway in Calamba, Laguna.

The STI Academic Center Las Piñas, meanwhile, would rise on a 10,000-sqm lot at the corner of the Alabang-Zapote Road.

STI Holdings said the schools, which would offer a conducive learning environment, would be completed in May 2014.

STI Holdings is currently constructing a new STI Academic Center in a sprawling four-hectare property in Ortigas-Cainta that would house a new campus for 5,000 students and a new head office.

Outside Luzon, STI Holdings would also put up the 2,000-sqm STI College Cebu near the Ayala Center in Cebu City.

The expansion program is expected to boost enrollment to as much as 100,000 students in 2015.

In the April to December period, STI Holdings’ student population rose to 68,363 from 66,740 a year ago, resulting in increased revenues from tuition and other fees.

To date, the company has 85 schools nationwide, of which 55 are franchised and 30 are company-owned. It has 67,361 students for STI alone and 72,000 including other affiliate schools PWU and iAcademy.

STI allotted P1.528 billion for capital expenditures this year and P2.39 billion for 2014.

In January to September 2012, profits of STI Holdings more than doubled to P578.74 million from P219.32 million a year ago as revenues climbed nearly 10 percent to P1.21 billion.