Exclusive Kids&Us Agreement in Vietnam

RNS Number : 0578W

Asia Strategic Holdings Limited

15 August 2022

 

15 August 2022

Asia Strategic Holdings Ltd.

("Asia Strategic" or the "Company")

Exclusive franchising agreement for the development of "Kids&Us School of English" in Vietnam

Asia Strategic Holdings Ltd. (LSE: ASIA), the independent developer and operator of consumer businesses located in emerging Asia, is pleased to announce that it has today entered into an exclusive franchising agreement with Kids&Us English, S.L.U ("Kids&Us") for the development of English language centres for children under the brand "Kids&Us School of English" in Vietnam.

Kids&Us is a leading provider of English language education for children from as young as one year old. Founded in Manresa, Barcelona, in 2003, Kids&Us has over 155,000 students across 462 schools in Spain and a further 108 schools internationally.

Since founding the school, Natàlia Perarnau has developed an innovative and effective pedagogical method:

· Kids&Us uses a unique teaching method based on the natural process of developing one's mother tongue, a process which takes place in a specific, natural and spontaneous order.

· The courses are adapted to the students' ages and life experiences.

· Small groups - a maximum of five in the 'Babies' stage (one and two-year-olds) and eight across the rest of the courses - allow for personalised attention and a high level of student participation and interaction in the classroom.

· Continuity of the courses allows children to learn from one-year old.

· Classes are conducted entirely in English, ensuring total linguistic immersion.

· Students can continue learning English outside of class time:

o The Kids&Us 360º Universe provides an endless range of activities and stimulating opportunities to continue learning at urban day camps, workshops (for cooking, science, theatre), summer camps, etc.

o Products created by Kids&Us include books, boardgames, etc.

o Apps, online homework exercises and electronic devices.

Under the terms of this exclusive franchising agreement, the Company shall pay Kids&Us (i) an initial fee of approximately EUR 100,000, (ii) one-off opening fees for each centre, (iii) ongoing service fees as a percentage of revenues and (iv) didactic materials based on consumption, among other fees.

The Company plans to open its first four centres in Ho Chi Minh City by September 2022.

Commenting on the partnership, Natàlia Perarnau and Quim Serracanta, founders of Kids&Us School of English, said : "We are delighted that we have agreed to this strategic partnership with Asia Strategic Holdings for the provision of English language education to children in Vietnam. Education is a truly universal right, and we are excited about the opportunity to offer our best-in-class methodology and products in Vietnam. We look forward to a long and prosperous relationship with Asia Strategic Holdings and further expanding the Kids&Us global brand in Asia. "

Commenting, Enrico Cesenni, Chief Executive Officer of Asia Strategic Holdings, said:  "Following the signing of an exclusive franchising agreement for the development of Kids&Us School of English in Myanmar, Asia Strategic Holdings and Kids&Us have decided to further expand their collaboration to Vietnam. Our first school will open its doors to Vietnamese students aged one to seven years old in the next few days, while three additional schools will open in September 2022. We are very excited by the opportunity to offer the Kids&Us product in a very dynamic market that values high quality education and innovation."

For more information, please visit  www.asia-strategic.com  or contact:

Asia Strategic Holdings Ltd. Richard Greer, Independent Non-Executive Chairman Enrico Cesenni (OSI), Founder and Chief Executive Officer	[e-mail] [e-mail]
Allenby Capital Limited (Broker) Nick Athanas Nick Naylor Freddie Wooding	[phone]
Yellow Jersey PR (Financial PR) Henry Wilkinson	[phone]

Notes to editors

Asia Strategic Holdings Ltd. 

Asia Strategic Holdings Ltd. (LSE: ASIA) is an independent developer and operator of consumer businesses in emerging Asia. The Company's portfolio focuses on Education and Services with the view to expand within the broader consumer sector and is located in Vietnam and Myanmar, two of the fastest growing economies in the world over the last decade.

Education sector:  the Company currently has exclusive development and franchising agreements with Wall Street English for up to ten English language centres across Myanmar. Two centres were opened in 2017, a third in August 2018, and a fourth in February 2020. As of July 2022, Wall Street English Myanmar served over 2,700 students.

In July 2020, the Company completed the acquisition of the Wall Street English business in Vietnam. Founded in 2013, the WSE Vietnam business operates through seven centres in Ho Chi Minh and Binh Dhuong serving over 3,500 students as of July 2022.

The Company also operates a joint venture with Auston Institute of Management to develop and operate the Auston College Myanmar. The private school opened in May 2018 offering diplomas in Engineering Technology, Mechanical Engineering and Networking, Information Systems, and Security. English language learning is also provided by the Company's nearby Wall Street English centre. In February 2020, the Company announced a partnership with Liverpool John Moores University to provide high quality engineering training programmes for young, working professionals in Myanmar, to be taught by Auston College Myanmar's teaching staff at its Junction Square complex in Yangon.

In August 2019 the Company launched its first private K-12 international school, the Yangon American International School ("Yangon American") in Yangon. In July 2021 Yangon American was recognised as an official International Baccalaureate Primary Years Programme ("IB PYP") school by the International Baccalaureate Organization.

In April 2022, the Company entered into an exclusive franchising agreement with Kids&Us for the development of English language schools for children across Myanmar. The first two centres shall be opened in Yangon by June 2023.

In August 2022, the Company entered into an exclusive franchising agreement with Kids&Us for the development of English language schools for children across Vietnam. The first four centres shall be opened in Ho Chi Minh by September 2022.

Services sector:   through its acquisition of EXERA, the Company offers security, risk management and secure logistics services, including cash-in-transit. Founded in 2013, EXERA employs approximately 1,500 well-trained and high-quality security officers making it one of the largest security services providers in Myanmar.

Furthermore, the Company provides hospitality services, managing over 280 beds across four boutique hotels in three core tourist locations in Myanmar, operating under the award winning Ostello Bello budget hospitality brand. The Company operates an asset light strategy, entering into long-term operating and management agreements with local hotel owners.

Vietnam and Myanmar were among the fastest growing economies in Asia in 2017-2020 (Source: Asian Development Bank). In 2022, Vietnam's annual GDP growth is expected to be 6.5% (Source: Asian Development Bank).

The Company is well positioned to provide investors early exposure to Vietnam's and Myanmar's strong economic fundamentals enhanced by ASEAN's wider growth prospects. 

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Kids&Us

Founded in Manresa, Barcelona, in 2003 by Natàlia Perarnau and Quim Serracanta, Kids&Us has over 155,000 students in 462 schools in Spain and 108 schools in various countries in Europe, Mexico, Japan and Morocco.

In 2017, Corpfin Capital acquired a majority stake in Kids&Us together with its founders, with the aim of promoting a new stage of growth and professionalisation of the company.

https://www.kidsandus.es/en/  

 

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