(2 years, 9 months ago)
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The Minister for Asia (Nigel Adams)
I can today inform Parliament that the British Council, a non-departmental public body of the Foreign, Commonwealth and Development Office, will sell its IELTS English language test business in India to IDP Education, for £130 million. The business will be sold on a debt free, cash free basis. Metric Impact (over a five-year horizon) Net sale proceeds £120 million Retention value range Above Public sector net borrowing No immediate impact Public sector net debt Improved by a total of £120 million Public sector net financial liabilities Improved by a total of £120 million Public sector net liabilities Improved by a total of £118 million
Rationale
Like many organisations, covid-19 has had a significant financial impact on the British Council’s operations. The proceeds from the sale will strengthen the British Council’s financial position and support its modernisation process.
Format and timing
Due to the nature of the agreement between the British Council and its IELTS partners, there is only one possible buyer of the British Council’s India IELTS business. Ernst & Young provided an independent valuation, which concluded that the offer for the business was fair and reasonable.
UK Government Investments has worked closely with the FCDO providing valuable advice on commercial aspects of the British Council’s outline and full business cases for the transaction.
Fiscal impacts
I can confirm that the net sale proceeds of £120 million were above the Government’s retention value range.
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