Afya Limited Announces Medical School Authorization – Garanhuns - PE

Rhea-AI Summary

Afya Limited (Nasdaq: AFYA) has received authorization from Brazil's Ministry of Education to operate a new medical school in Garanhuns, Pernambuco. This approval allows ITPAC, a subsidiary, to expand operations and provide 120 medical seats, translating to a purchase price of R$108 million, with half payable at closing and the remainder in two annual installments. This move aligns with Afya's goal of being a leading medical education provider in Brazil.

Positive

• Authorization to operate a new medical school in Garanhuns boosts expansion strategy.
• Secures 120 medical seats, enhancing educational offerings.
• Total purchase price of R$108 million reinforces growth potential.

Negative

• None.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA) today announced that the Secretary of Regulation and Supervision of Higher Education of the Ministry of Education (“MEC”) authorized the operation of the medical school in Garanhuns in the State of Pernambuco.

This authorization is in connection with a previous requirement made by ITPAC, a subsidiary of Afya Participações (“Afya Brazil”), to expand their operation and open a branch in the city of Garanhuns, before the consolidation of Afya.

On March 28, 2019, our shareholder Nicolau Carvalho Esteves entered into an agreement with Afya Brazil, in connection with the authorization of ITPAC Garanhuns Greenfield unit, in which Afya Brazil agreed to pay to Nicolau Carvalho Esteves the amount of R$900,000 multiplied by the number of medical school seats authorized by MEC.

ITPAC Garanhuns authorization guaranteed 120 medical seats to Afya, totaling a purchase price of R$108 million of which: 50% in cash on the transaction closing date and 50% in two equal annual installments, adjusted by the CDI rate.

About Afya:

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211105005559/en/

Investor Relations Contact:

Afya Limited

ir@afya.com.br



Media Contact:

Cíntia Moraes Marin

cintia.marin@afya.com.br

Source: Afya Limited

FAQ

What recent authorization did Afya Limited receive?

Afya Limited received authorization from the Ministry of Education in Brazil to operate a new medical school in Garanhuns, Pernambuco.

How many medical seats will the new Afya medical school provide?

The new Afya medical school in Garanhuns will provide 120 medical seats.

What is the total purchase price for the new medical school by Afya?

The total purchase price for the new medical school is R$108 million.

What is the payment structure for the new medical school acquisition?

The payment structure includes 50% in cash at closing and the remaining 50% in two equal annual installments.