What is with these two dividend-paying mid-cap stocks?
Increased ownership in Online Education Services: SEEK Ltd (ASX: SEK), the largest global online employment marketplace with synergistic education businesses, has reported to invest cA$118.5 million to increase its ownership in Online Education Services (“OES”) from 50% to 80%. OES is a joint venture between SEEK and Swinburne University of Technology. SEK aims to have greater flexibility to secure multiple education partners onto the OES platform through the transaction (which is to be funded by SEEK’s existing cash and bank debt facilities). Further, the move is expected to be cash EPS accretive in FY18 and strongly accretive over the medium to long-term. OES has delivered excellent student outcomes post SEK’s investment with 1,500 alumni reported since the first graduates in March 2014; and FY14-FY16 Revenue CAGR of 37% and FY14-FY16 EBITDA CAGR of 33%. SEEK thus aims to leverage OES’ organic growth opportunities via development of new programs, retention initiatives and international expansion. Going forward, OES will be consolidated into SEEK Group Financial Statements. On the other hand, SEK stock has been removed from S&P /ASX 50 Index from March 20, 2017.
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