CIBT Received Government Approval to Acquire Weifang Commercial School
Capital Alliance Group Inc. (TSX.V: CPT) reports that its subsidiary, CIBT School of Business and Technology Corp. (“CIBT”), has received official approval from the Weifang Education Bureau, a branch of the Weifang Municipal Government, in Shandong province, China to proceed with the closing of the previously announced acquisition of Weifang Commercial School (“WCS”).
As reported on April 5th, 2006, CIBT School of Business & Technology Corp. will acquire majority ownership in Weifang Commercial School (“WCS”) from the Weifang Municipal Government. As part of the approval received from the Weifang Education Bureau, all privileges, official status & licenses of WCS will remain unchanged post transaction with CIBT. In addition, all benefits provided by the government to WCS staff members, and all cash subsidies from the government to WCS will also remain unchanged. The Weifang Municipal Government will support WCS to seek university/college status from the provincial government bodies.
As a condition to this transaction, the Weifang Municipal Government will grant CIBT free usage of 33 acres of campus land and over 300,000 sq. ft. of building facilities for 15 years including two newly finished computer labs and classroom buildings. 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 generating approximately US$2.1MM in revenue.
CIBT will invest intellectual property and cash capital in stages staggered over 2 years. CIBT will provide operational and financial management to this venture. Total enrolment for CIBT post transaction will exceed 10,000 students.”We are very pleased to receive the level of financial and operational support from the Weifang Municipal Government,” commented Toby Chu, President & CEO of Capital Alliance Group Inc. and CIBT. “This transaction will provide CIBT with maximum leverage of its existing infrastructure in China and achieve economies of scale. Furthermore, this public and private partnership arrangement clearly demonstrates the open-minded approach and keen support of China’s education system towards credible foreign partners, and will serve as our operating model to expand our acquisition base to other cities in China.”
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 enrolment 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, one campus in Anyang, and four 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. For more information visit the company’s web site at www.cibtcorp.com.
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CIBT School of Business & Technology Corp.
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