CIBT to Acquire Another School in China
Capital Alliance Group Inc. (TSX.V: CPT) reports that its subsidiary, CIBT School of Business & Technology Corp (“CIBT”) has signed a Memorandum of Understanding (“MOU”) to acquire majority ownership in Weifang Commercial School (“WCS”) from the Weifang Education Bureau, a division of Weifang Municipal Government in Weifang city, Shandong province of China.
This MOU outlines the basic business terms for CIBT to acquire no less then a majority ownership of WCS. As a condition of this transaction, the Weifang municipal government has agreed to grant CIBT free usage of 33 acres of campus land and buildings for 50 years. In addition, the government will contribute four buildings, three of which are currently used for administrative, classrooms and computer laboratories with the fourth one currently under construction. The facility space of these four buildings totals 250,000 sq ft.
CIBT will provide and integrate its western-based education programs with WCS’s Chinese academic and career education programs. Future graduates of WCS will be able to transfer certain credits earned from WCS to CIBT’s Beihai International Management School, also located in Weifang city. WCS currently has 6,200 students enrolled in various subjects including degree granting business management and technology programs and non-degree career development and trade skill programs.
CIBT will invest cash capital, intellectual property and provide management to this venture. Future financial management and administration duties of this venture will be managed by CIBT with the support of WCS executives.
The parties will proceed to complete there due diligence reviews, seek the necessary regulatory approvals and negotiate the formal agreement. Further details will be disclosed following the execution of the formal agreement.
About Weifang Commercial School:
Established in 1974, Weifang Commercial School occupies approximately 33 acres of campus land with constructed facilities of approximately 17 acres. The school’s facilities require dormitories, cafeterias, lecture halls, gymnasium, computer labs and multi-media rooms. WCS offers Associate degree programs in business administration and technology, and technical trade programs including hotel management, logistic procurement, medical assistance and refrigeration technologies. WCS employs a faculty of 230 members, 138 of which are full-time instructors. The total enrollment for the School is 6,200 students, among which 1,900 are in associate degree programs.
About Weifang City:
Weifang City is located at the center of Shandong Province both of which have a population of 8.5 million and 96 million people respectively. Its major industries require electronics, machinery, chemical and building materials, marine chemistry and paper. In 2004, the city’s GDP was approximately US$15.5 billion. Within a 2 hour driving distance from Weifang city in all four directions resides roughly 110 million people.
CIBT School of Business is a leading business, technology and technical school in China for over a decade. CIBT operates three campuses in Beijing, two campuses in Weifang, and three learning centers in other cities in China. CIBT has academic partnerships with Beijing University of Technology and Weifang University, and delivers postsecondary business, technology and technical trade skill programs to students and corporations in China. By cooperating with leading education providers in North America including Western International University, a subsidiary of Apollo Group Inc.; ITT Technical Institute; WyoTech Technical Institute, a subsidiary of Corinthian Colleges Inc.; and other universities from Europe and Asia, CIBT delivers advanced curricula to meet the progressive needs of China’s growing student population.
Capital Alliance Group Inc. and CIBT School of Business & Technology Corp
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