mergers & acquisitions 
Printing and publishing company SNP Corporation Ltd is selling its entire educational publishing business currently operated in Singapore, Malaysia and Hong Kong. SNP president and CEO Yeo Chee Tong says the company has entered into an agreement to sell the educational publishing business for a consideration of S$37,282,000 to Times Publishing Limited.

“This divestment is a strategic step for us to narrow our focus to just printing, which in itself has a wide range of products and services with high growth potential in this region,” he explains.

“We have grown the educational publishing business aggressively after the merger with formerly Sesdaq-listed Pan Pacific Public Company Ltd. However, its pace of growth has been relatively slower against the regional growth in our Printing segment.

“This is because M&A opportunities and growth potential in this region are more for Printing than for Publishing, particularly in China where educational publishing remains a ‘closed territory’ for foreign controlled investments. Hence, letting it go will allow us to consolidate and concentrate our resources to our core strength in printing.”

The divestment has increased the earnings per share from 8.86 cents to 18.13 cents and the transaction has significantly lowered SNP’s debt to equity ratio.

SNP started its educational publishing business in 1987 when it acquired Educational Publications Bureau Private Limited from the Ministry of Education in Singapore. In 2000, SNP merged with another listed publishing company, Pan Pacific Public Company Ltd, expanding its presence in educational publishing business from within Singapore to include Malaysia and Hong Kong.

Times Publishing Limited is a wholly-owned subsidiary of Fraser and Neave, Limited. The sale consideration was arrived at on a willing-buyer-willing-seller basis.