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(Bloomberg) — Dubai-based GEMS Education is considering talks to sell a controlling stake to a consortium of state-backed entities in Abu Dhabi that have stalled over valuations, according to people familiar with the matter.
Wealth fund ADQ and property developer Aldar Properties PJSC have been unable to agree a price with GEMS’ owners, who are seeking to sell their stake at a valuation of $6 billion, people familiar with the matter said. information.
The company may now consider inviting other bidders or considering taking the business public, the people said. Negotiations with an Abu Dhabi bidder that began late last year have not officially concluded and could still restart at a later date, they said.
Representatives for ADQ, Aldar, CVC and GEMS declined to comment.
Owned by its founder, Sunny Varkey, and buyout firm CVC Capital Partners, GEMS is one of the largest private school operators in the world. The owners were weighing options including an initial public offering, although their preferred exit route at the time was a sale, Bloomberg reported in September.
Varkey also held talks to sell some of his stake in GEMS in 2020, but was hampered by the pandemic, which forced schools to close for months. GEMS, which has about 60 schools in the Middle East and North Africa, had considered an IPO in 2019, but Dubai’s decision to freeze tuition fees at the time disrupted those plans.
The industry is now booming in Dubai with the influx of expatriates. Parents in the UAE are already among the world’s biggest spenders on their children’s education, and the city will this year allow some private schools to raise tuition fees by 3 percent based on their ratings.
— With the assistance of Nicolas Parasie.
©2023 Bloomberg Intelligence
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