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Singapore’s Big Loser this Week: Raffles Education Corp Ltd

Shares of education provider, Raffles Education Corp Ltd (SGX: NR7), lost around 2% since last Thursday to end the week at S$0.275. Comparatively, the Straits Times Index (SGX: ^STI) went went down by only 0.3% during the same period. This makes Raffles Education this week’s big loser.

Raffles Education, which is headquartered in Singapore, is a “private education provider, owner and manager of education assets and facilities, and education-linked real estate investor and developer”. It established its first college here in 1990, and has since expanded its reach to over 13 countries including Australia, China and India. More than 20,275 students have benefitted from the education the company has provided.

On 16 September, the firm announced that it had started arbitration proceedings against Educomp Asia Pacific Pte Ltd and Educomp Professional Education Limited after a proposed acquisition of a 41.8% equity in Educomp-Raffles Higher Education Limited was not completed in due time. Educomp Asia Pacific Pte Ltd and Educomp Professional Education Limited are the vendors.

The acquisition was supposed to be completed on 31 July 2015 and was subsequently extended, by mutual agreement of the parties, to 19 August 2015. In spite of numerous written reminders and service of a Notice to Complete, the pen was not put to paper by the vendors.

The firm added that it will “make further announcements as and when there are any material developments in the matter”.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.