Allen & Overy advises Varkey Group Limited

Allen & Overy has advised Varkey Group Limited (VGL) on the sale of a minority stake in GEMS Education (GEMS) to Khazanah Nasional Berhad (Khazanah), a Malaysian government-owned investment fund. GEMS is one of the world’s largest private operator of K-12 schools. VGL, the umbrella organisation, operates in the education, healthcare and construction sectors. As part of the transaction, VGL remains the majority shareholder of GEMS. The investment adds to Khazanah’s indirect interest in the company through its stake in Fajr Capital, the Dubai-based private equity fund which in 2014 purchased a minority stake in GEMS with a consortium that included Mumtalakat, Bahrain’s sovereign wealth fund, and Blackstone, a transaction on which A&O also advised VGL.

Corporate partner David Foster, who led the A&O team, commented, “This transaction is one of a number of recent investments in the education sector in the MENASA region and underlines investor appetite in social infrastructure. We are delighted to have supported VGL on the reinforcement of their relationship with a leading global sovereign wealth fund, and in their continuing journey to deliver high-quality education.”