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(Bloomberg) — A consortium of Abu Dhabi state-backed entities is weighing a suggestion for a stake in Dubai-based GEMS Training, one of many world’s largest non-public faculty operators, individuals acquainted with the matter mentioned.
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Wealth fund ADQ and actual property developer Aldar Properties PJSC are amongst these exploring a joint bid for a part of non-public equity-backed GEMS, the individuals mentioned, asking to not be recognized discussing confidential data. Aldar, which is backed by the Abu Dhabi wealth fund Mubadala Funding Co., already manages a colleges enterprise referred to as Aldar Training.
GEMS is owned by its founder Sunny Varkey and buyout agency CVC Capital Companions, who’ve been exploring choices for his or her stakes within the enterprise. Any sale might worth GEMS at about $6 billion, Bloomberg Information reported final month.
Deliberations are ongoing and there’s no certainty that the Abu Dhabi funds will resolve to make a suggestion for a stake in GEMS, based on the individuals. Representatives for ADQ, CVC and GEMS declined to remark.
A spokesperson for Aldar mentioned the corporate “continues to evaluate alternatives to increase its platform in core and complimentary industries” in step with its development technique, declining to touch upon particular transactions.
Dad and mom within the UAE are among the many world’s greatest spenders in the case of educating their youngsters, contributing to a glut of personal colleges. Dubai’s emergence as a post-Covid haven has drawn expatriates to the emirate, serving to prop up demand.
GEMS, which traces its roots again about 60 years, operates greater than 60 colleges educating over 130,000 college students throughout the Center East and North Africa. It additionally has colleges in Asia, Europe and North America, based on its web site. CVC purchased its stake within the firm in 2019.
Varkey held talks to promote a few of his stake in GEMS in 2020, however struggled to seek out patrons amid the pandemic, with colleges and universities shutting down as a part of world lockdowns. The agency had additionally thought of a inventory market itemizing in 2019, however these plans had been scuppered by Dubai’s transfer to unexpectedly freeze faculty charges.
GEMS’s homeowners are working with Morgan Stanley and Goldman Sachs Group Inc. to determine patrons, individuals acquainted with the matter mentioned beforehand. They’ve additionally been weighing an preliminary public providing as a possible exit route although the popular choice is a sale, they mentioned.
–With help from Aaron Kirchfeld.
(Updates with Aldar response in fifth paragraph)
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