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Cape Town - There is no truth in any statements that Curro Holdings would change the names or ethos of Advtech [JSE:ADH] schools, or that its vision for the group is unclear, Dr Chris van der Merwe, CEO of Curro Holdings [JSE:COH], said on Monday.
He emphasised that Curro, an operator of private schools in SA, made it clear to Advtech's representatives from the start that it believes in a multi-brand strategy.
"Our conditional firm intention offer of July 23 2015 confirmed Curro’s multi-brand strategy. Both companies’ existing brands will be preserved as this strategy gives the wider private school market more options," said Van der Merwe.
Curro decided to issue a statement following "certain comments in the media that the Advtech management is uncertain about what Curro’s strategy will be regarding ethos, values, brand names and norms of schools".
Curro's bid of R6bn for Advtech was rejected by the Advtech board, which said it was not in the company's interest. Curro, however, had the backing of two of Advtech's biggest shareholders. Last week Curro indicated it has resubmitted its offer on similar terms.
READ: Curro may go hostile with R6bn bid for Advtech
"Since we listed, Curro has communicated its vision of providing high quality independent education to learners in South Africa. We do this through the development of our own schools, as well as through the acquisition of schools whenever the opportunity arises," said Van der Merwe.
"Since 2011 we have acquired many top independent schools and through consultation with parent and teacher societies have made them stronger over the years. We have always kept their traditions, value systems and ethos unchanged."
He said Curro had acquired these schools because they were indeed good ones. He gave as examples Woodhill College, Aurora Independent School, Waterstone College and Grant Leigh.
"Good quality education is always directly aligned with curriculum development and Curro believes it can contribute much and effectively in this regard," said Van der Merwe.
He estimates that Curro and Johannesburg-based Advtech combined will have only about 10% of the independent education school market and about 0.5% of the total school market.
"This we discussed at length with Advtech representatives. If the shareholders of Advtech are not in favour of such a transaction, Curro will respect their view, but we are confident that together we can develop independent schools into a continental champion, should Advtech shareholders support the proposed transaction," concluded Van der Merwe.
