AdvTech buy Monash

Yesterday AdvTech announced the purchase of Monash University South Africa for R340 million. Monash is the biggest university in Australia and offers degrees with international recognition. The Johannesburg campus has the capacity for 6,500 students with an 18 year history in the country.



AdvTech are also purchasing the property itself. Working capital requirements could push the purchase price up to a maximum of R500 million.

AdvTech have earmarked tertiary as a massive growth opportunity. It has certainly done well for them recently. We have looked at the stats and can see the huge pressure that the state universities are under. We tend to agree that wealthy South Africans are going to turn to private tertiary suppliers for their requirements. Monash has an established brand and a great campus. The campus has 2 residences, sports fields, gyms, pools, basketball and tennis courts.



We like the private education theme. As Paul notes above, the state-provided education facilities are poorly run and not getting any better. It is also a brave time for AdvTech to make such a big acquisition, ploughing capital into physical assets here in South Africa. If our economy takes a turn for the better, the price that they paid will probably seem very favourable, in hindsight. As shareholders of AdvTech, we endorse this move.