G8 Education (ASX:GEM) to sell 25 centres

Company News

by Katrina Bullock

Child care service provider, G8 Education (ASX:GEM) has inked a deal to sell 25 of its centres in Western Australia to Sparrow Early Learning for approximately $6.4 million.

Sparrow is an existing provider of early childhood education through its network of 34 day care centres across Queensland and Victoria. Completion is targeted for December 2019.

As a result of the divestment, the Group will realise substantial capex savings along with an annual cost reduction of approximately $330,000 per annum.

The funds will be used to repay debt and grow opportunities.

Shares in G8 Education (ASX:GEM) are trading 13.9 per cent lower at $2.23.

Katrina Bullock

Finance News Network
Katrina is a respected TV journalist, as well as a renowned presenter and award winning lawyer. She holds a Bachelor of Laws (Honours 1st class, division 1), a Bachelor of Business (with Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She began her career as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel of Greenpeace Australia Pacific. In 2020 Katrina was named one of the 30 best lawyers in Australia under 30 by Lawyer's Weekly.