VENTURES AFRICA – South African private education company, Curro Holdings has announced that it raised more than $25 million (R477 million) through a rights issue, with an additional fund earmarked for the company’s growth strategy.
This is Curro’s second right issue since it was listed in 2011 and is meant to fortify the company’s balance sheet and resolve the debt incurred during while pursuing growth. The issue has raised $25 million (R477 million), which includes R130 million (about $10 million) it got from a private placement with black-owned investment company Thembeka Capital.
According to BusinessDay, Curro is capitalizing on the increasing demand for private education in South Africa. According to the company, there is growing concern among South African parents about the low quality of education being offered in government-owned schools which are often overcrowded and/or lacking qualified teachers.
While speaking on Monday, Curro’s CEO, Chris van der Merwe said he never doubted the rights issue would succeed because investors had bought into the company’s vision of becoming a key player in the private education sector.
“Curro is also considering a couple of acquisitions,” he added, although he did not give specific details as a result of the company’s non-disclosure agreements it signed with the owners of the schools.