Raffles Education

Raffles Education: to sell 50% of its wholly owns subsidiary, Value Vantage, to Mr Ding Fu Ru, for $46m.
The purchaser is an industrialist and real estate developer with extensive experiences in the PRC.
Value Vantage provides education and training services, and has invested in various education projects in the PRC, and subsidiaries that provide consultancy and mgt services for education projects...

Lacking clarity on the exact nature of assets sold, we can only hypothesize that this transaction may pave the way for Raffles Edu to fulfill its previously stated property development aspirations in China.
Sale completion is targeted by 28 Jul ’11...

Raffles Edu will book a gain of $23.7m from the sale. Sale proceeds to be used for working capital and to reduce bank loans.
Based on FYJun10 numbers, NTA (post 3-into-1 share consolidation) will rise from 37.65cts to 42.2cts, and EPS will increase from 6.03cts to 8.46cts.
Street has wide range of ratings for the stock, with recent TP btwn $0.45-0.90.
Stock closed at $0.46 yday, but touched a new multi-year low intraday at $0.445.