Raffles Education

Raffles Education: update on Raffles Vietnam.
Despite the group’s appeal to resume operations, options have so far been unworkable.
Raffles Vietnam has since fully paid the stipulated violation fine and both centres in Hanoi and Ho Chin Minh have been suspended wef 6 Jan ’12.
Meanwhile, the group has been processing the permanent transfer of >400 Vietnam students to other Raffles Edu colleges in Spore, Sydney and Phnom Penh, and will bear the student air fares and contribute partially to the students’ living expenses in these cities. Students who have chosen to discontinue their studies with Raffles will be given refunds for the unutilized portion of any tuition fees paid.
The group is reorganizing its Vietnam operations and will be applying for new licenses to resume operations.
Raffles notes the reorganization is likely to have a material impact on the EPS of the group for FYJun12.
The stock trades at 10x trailing P/E, and 20.4x consensus fwd P/E.