23 June, 2020 Colombia

Ashmore funds Colombian private education buy

Corporate / M&A

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) has helped local private education company Redcol acquire shares in several local schools, after entering into an investment agreement with British fund manager Ashmore Group.

Ashmore relied on Gómez-Pinzón for the deal, which closed on 2 June. The value remains confidential. 

Redcol entered into an investment agreement with two funds managed by Ashmore, through which the British investment group granted a convertible loan to Redcol.

Ashmore converted the amount of that financing into an undisclosed number of equity shares in Redcol upon the deal’s closing. Redcol and its subsidiary Better Schools used the proceeds of the financing agreement to acquire shares in several education centres and schools in Colombia.

Through the deal, Redcol bought a 22% stake in the CSFR school in Bogotá as well as 80% of the outstanding shares in Preescolar Bureche Santa Marta in the northern region of Magdalena. It also purchased a 100% stake in educational centre Gimnasio del Norte Valledupar in the northeastern region of César.

Redcol’s 10 private schools are located in seven different Colombian cities, including Bogotá, Medellín and Cartagena. They are attended by over 7,200 students.

Ashmore Group was founded in London in 1999 and currently manages US$98 billion worth of assets across a range of industries.

Counsel to Ashmore

Gómez-Pinzón
Partner Felipe Mariño and associates Natalia Villamizar and Juan Manuel Ronderos

Counsel to Redcol
In-house counsel – Jose Reinaldo Quijano Perez

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partner Martín Acero and Hernando Padilla, and associates Paula Buriticá, Pedro Arango, Verónica Barone and Andrea Cubillos

Source: Latin Lawyer

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