Phuket’s British International School reports new operator talks

[webfact]

Phuket’s British International School reports new operator talks
The Phuket News


A letter to parents issued last week noted that Nord Anglia had signed an MoU about taking over operations at British International School Phuket. Photo: BIS Phuket

PHUKET: -- British International School Phuket is reportedly in talks with a global educational provider who is bidding to take over operations, reports Bill Barnett, Managing Director of hospitality consultancy C9 Hotelworks.

“In a letter addressed to parents last week, the school’s CEO Apiwat Ourairat stated that an MoU [Memorandum of Understanding] had been signed with Nord Anglia over a potential lease of the operating entity of the school,” Mr Barnett reported.

The letter stated that due diligence was taking place and the outcome was currently under negotiation, he added.

“It was clarified that the school ownership would remain with the current company and that a portion of funds from any potential lease would be reinvested in a significant upgrading of the facility,” Mr Barnett reported.

Nord Anglia is a global firm focused on international institutions with 42 located across the globe. In Thailand their network includes St Andrews International School Bangkok and Regents International School Pattaya.

Full story: http://www.thephuketnews.com/phuket-british-international-school-reports-new-operator-talks-57746.php


-- Phuket News 2016-06-06

[eddie61]

As a parent of 2 kids at Regent's Pattaya, I think that there have been significant improvements after the Nordanglia involvement 2-3 years ago, both in capital investment and staff morale.

[Jeremy50]

Another money-making junket pretending to be an English Public School. Complete with faux Gothic Architecture.

[stevenl]

Another money-making junket pretending to be an English Public School. Complete with faux Gothic Architecture.

And you know that from the photo or do you have any real information?

[dabhand]

As a parent of 2 kids at Regent's Pattaya, I think that there have been significant improvements after the Nordanglia involvement 2-3 years ago, both in capital investment and staff morale.

Agreed. Just mentioned this to my son who left Regents Pattaya last year after being there for nine years. He was also impressed by the improvements to gym facilities, computer systems, etc. So I would expect similar improvements at BIS Phuket if they do finalise this deal.

[NamKangMan]

Another money-making junket pretending to be an English Public School. Complete with faux Gothic Architecture.

And you know that from the photo or do you have any real information?

Nord Anglia must be making money out of the education business, otherwise they wouldn't be investing in it.

[stevenl]

Another money-making junket pretending to be an English Public School. Complete with faux Gothic Architecture.

And you know that from the photo or do you have any real information?

Nord Anglia must be making money out of the education business, otherwise they wouldn't be investing in it.

Which had nothing to do with my questions. Stop trolling.

[carlyai]

I was there teaching as the regents school pattaya was built around us.

If the Phuket school was constructed like the pattaya school, it's all shoddy bricks and mortar in them steeples.

[Phuket Stan]

I was there teaching as the regents school pattaya was built around us.

If the Phuket school was constructed like the pattaya school, it's all shoddy bricks and mortar in them steeples.

I am sure I would not be sending my children to any school that employed you as a teacher

Your grammer and syntax borders on the illiterate

[eisfeld]

Your grammer and syntax borders on the illiterate

Be sure to also not send him to whatever school you went to

Don't take it personal but it's just too funny when people criticize someone else's english using bad english.

[madmitch]

Another money-making junket pretending to be an English Public School. Complete with faux Gothic Architecture.

The "faux-Gothic" architecture is a legacy of BIS's former identity as Dulwich College. The building is a modern day version of the Dulwich building in South London.

And can you please name me a non-profit international school in Thailand? I'd be very interested to know.

[NamKangMan]

Another money-making junket pretending to be an English Public School. Complete with faux Gothic Architecture.

And you know that from the photo or do you have any real information?

Nord Anglia must be making money out of the education business, otherwise they wouldn't be investing in it.

Which had nothing to do with my questions. Stop trolling.

I'm not trolling.

The company is looking to acquire the school.

I am unsure who will have majority of control over operations because the article says the BIS Phuket "is reportedly in talks with a global education provider who is bidding to take over operations" and later in the article it say this, "It was clarified that the school ownership would remain with the current company."

Nord Anglia may cut expenses, or raise income via school fees, or simply manage the school better, or a combination of all of these, to raise profits.

Whether the standard of education increases, in line with better management and increased profits, who knows?

Here's their website.

http://www.nordangliaeducation.com/

I don't think the acquisition is a "junket" but they wouldn't be investing in this particular school if they didn't think it was profitable for their company to do so.

The question is, will Nord Anglia put profits before the kid's education?

Edited June 7, 2016 by NamKangMan

[NamKangMan]

As a parent of 2 kids at Regent's Pattaya, I think that there have been significant improvements after the Nordanglia involvement 2-3 years ago, both in capital investment and staff morale.

"both in capital investment and staff morale" - both of these are easily achieved with a cash injection, by improving infrastructure and raising salaries.

Did the standard of education rise accordingly?

Did fees remain the same?

[eisfeld]

I'm not trolling.

The company is looking to acquire the school.

I am unsure who will have majority of control over operations because the article says the BIS Phuket "is reportedly in talks with a global education provider who is bidding to take over operations" and later in the article it say this, "It was clarified that the school ownership would remain with the current company."

Nord Anglia may cut expenses, or raise income via school fees, or simply manage the school better, or a combination of all of these, to raise profits.

Whether the standard of education increases, in line with better management and increased profits, who knows?

Here's their website.

http://www.nordangliaeducation.com/

I don't think the acquisition is a "junket" but they wouldn't be investing in this particular school if they didn't think it was profitable for their company to do so.

The question is, will Nord Anglia put profits before the kid's education?

You assume that the investor wants or needs to raise profits. While many investors do this in order to get short term cash, some investors are playing for the long term and don't seek to inrease profits in the short term. They might as well swallow some losses just to increase the long term viability.

Over the course of 20+ years, I'm sure that they would make a nice multiple of their investment back even without raising tuitions.

Nord Anglia are a pretty huge player in this market and operate many big schools all over the world so they are not going to squeeze the life out of BIS and flip it to someone else at the end of it. Chances are they are in it for the long run.

And to the question if they will put profits before the children's education: of course they will - they are not a charity. But they probably understand that without providing proper education, there wont be profits either.

I wonder why BIS though is looking for an investor. I'm sure they make enough money to upgrade their facilities themselves. Do they want to cash out? Do they feel strong competition from PIA and feel they need outside help to stay competitive? Do they think that Phuket is losing its appeal to westerners and hence will see a dwindeling number of students? We'll probably never know.

[NamKangMan]

I'm not trolling.

The company is looking to acquire the school.

I am unsure who will have majority of control over operations because the article says the BIS Phuket "is reportedly in talks with a global education provider who is bidding to take over operations" and later in the article it say this, "It was clarified that the school ownership would remain with the current company."

Nord Anglia may cut expenses, or raise income via school fees, or simply manage the school better, or a combination of all of these, to raise profits.

Whether the standard of education increases, in line with better management and increased profits, who knows?

Here's their website.

http://www.nordangliaeducation.com/

I don't think the acquisition is a "junket" but they wouldn't be investing in this particular school if they didn't think it was profitable for their company to do so.

The question is, will Nord Anglia put profits before the kid's education?

You assume that the investor wants or needs to raise profits. While many investors do this in order to get short term cash, some investors are playing for the long term and don't seek to inrease profits in the short term. They might as well swallow some losses just to increase the long term viability.

Over the course of 20+ years, I'm sure that they would make a nice multiple of their investment back even without raising tuitions.

Nord Anglia are a pretty huge player in this market and operate many big schools all over the world so they are not going to squeeze the life out of BIS and flip it to someone else at the end of it. Chances are they are in it for the long run.

And to the question if they will put profits before the children's education: of course they will - they are not a charity. But they probably understand that without providing proper education, there wont be profits either.

I wonder why BIS though is looking for an investor. I'm sure they make enough money to upgrade their facilities themselves. Do they want to cash out? Do they feel strong competition from PIA and feel they need outside help to stay competitive? Do they think that Phuket is losing its appeal to westerners and hence will see a dwindeling number of students? We'll probably never know.

"You assume that the investor wants or needs to raise profits." - well, I can assure you, they are not doing it out of the kindness of their hearts.

"Over the course of 20+ years, I'm sure that they would make a nice multiple of their investment back even without raising tuitions." - look how Phuket has changed in just the last 5 years. Who knows what will become of Phuket 20 years from now?

"so they are not going to squeeze the life out of BIS and flip it to someone else" - I never suggested they were going to "flip it."

"And to the question if they will put profits before the children's education: of course they will - they are not a charity" - agreed. So, investors will have to get back their outlay, and then make a profit. How do you propose this is going to happen?

"But they probably understand that without providing proper education, there wont be profits either." - sure, but maybe they will rest on the reputation of the school.

"Do they think that Phuket is losing its appeal to westerners and hence will see a dwindeling number of students?" - hint, the Chinese aren't going to buy bars, cafes, guest houses, hotels etc here, and they certainly are not going to live here and start a family, and the Russians will not be back in big numbers for a long time.

Edited June 7, 2016 by NamKangMan

[eisfeld]

1) "You assume that the investor wants or needs to raise profits." - well, I can assure you, they are not doing it out of the kindness of their hearts.

2) "Over the course of 20+ years, I'm sure that they would make a nice multiple of their investment back even without raising tuitions." - look how Phuket has changed in just the last 5 years. Who knows what will become of Phuket 20 years from now?

3) "so they are not going to squeeze the life out of BIS and flip it to someone else" - I never suggested they were going to "flip it."

4) "And to the question if they will put profits before the children's education: of course they will - they are not a charity" - agreed. So, investors will have to get back their outlay, and then make a profit. How do you propose this is going to happen?

5) "But they probably understand that without providing proper education, there wont be profits either." - sure, but maybe they will rest on the reputation of the school.

6) "Do they think that Phuket is losing its appeal to westerners and hence will see a dwindeling number of students?" - hint, the Chinese aren't going to buy bars, cafes, guest houses, hotels etc here, and they certainly are not going to live here and start a family, and the Russians will not be back in big numbers for a long time.

I took the liberty to alter your quote by adding bulletpoints as we are now into multiple points and quotes.

Let me address them:

1) Agreed but they don't need to raise profits. They could keep the current profit margin or even accept a slightly lower one

2) Nobody knows but I'm sure they took that into account in their calculations

3) Never said you suggested it. Just said that they probably wont do that and hence will keep running it for the forseeable future

4) I propose running the school as is with some improvements where necessary. Will they do that? Would it be the best in terms of ROI? I can't tell as I don't have the numbers

5) That's a possibility. Though they also themselves have some reputation. Maybe not as much as their schools, granted.

6) You are not telling anyone anything new That's why I wrote it. Maybe the current owners see a bleak future and Nord Anglia doesn't. Or Nord Anglia is just willing to take a bet. Or they got a really good deal.

I think nobody apart from the involved parties can judge this investment. And what this means for the students and their parents remains to be seen.

[NamKangMan]

1) "You assume that the investor wants or needs to raise profits." - well, I can assure you, they are not doing it out of the kindness of their hearts.

2) "Over the course of 20+ years, I'm sure that they would make a nice multiple of their investment back even without raising tuitions." - look how Phuket has changed in just the last 5 years. Who knows what will become of Phuket 20 years from now?

3) "so they are not going to squeeze the life out of BIS and flip it to someone else" - I never suggested they were going to "flip it."

4) "And to the question if they will put profits before the children's education: of course they will - they are not a charity" - agreed. So, investors will have to get back their outlay, and then make a profit. How do you propose this is going to happen?

5) "But they probably understand that without providing proper education, there wont be profits either." - sure, but maybe they will rest on the reputation of the school.

6) "Do they think that Phuket is losing its appeal to westerners and hence will see a dwindeling number of students?" - hint, the Chinese aren't going to buy bars, cafes, guest houses, hotels etc here, and they certainly are not going to live here and start a family, and the Russians will not be back in big numbers for a long time.

I took the liberty to alter your quote by adding bulletpoints as we are now into multiple points and quotes.

Let me address them:

1) Agreed but they don't need to raise profits. They could keep the current profit margin or even accept a slightly lower one

2) Nobody knows but I'm sure they took that into account in their calculations

3) Never said you suggested it. Just said that they probably wont do that and hence will keep running it for the forseeable future

4) I propose running the school as is with some improvements where necessary. Will they do that? Would it be the best in terms of ROI? I can't tell as I don't have the numbers

5) That's a possibility. Though they also themselves have some reputation. Maybe not as much as their schools, granted.

6) You are not telling anyone anything new That's why I wrote it. Maybe the current owners see a bleak future and Nord Anglia doesn't. Or Nord Anglia is just willing to take a bet. Or they got a really good deal.

I think nobody apart from the involved parties can judge this investment. And what this means for the students and their parents remains to be seen.

Good reply, eisfeld.

I accept most of what you have posted.

What is interesting in this deal, and you touched on the point, is the ROI, especially in a declining western tourism market on Phuket.

Like you say, if the deal is successful, parents and / or staff will have to wait and see if there are any major changes.

Edited June 7, 2016 by NamKangMan

[steelepulse]

BIS also does boarding, so I'm not convinced NKM that the local tourism market plays as big a part as you think. I've actually been looking into boarding schools worldwide, and in a few international articles BIS was ranked pretty high. In the articles it also featured schools in Europe and Canada as well as Asia.

[NamKangMan]

BIS also does boarding, so I'm not convinced NKM that the local tourism market plays as big a part as you think. I've actually been looking into boarding schools worldwide, and in a few international articles BIS was ranked pretty high. In the articles it also featured schools in Europe and Canada as well as Asia.

The point I make in regards to tourism, and international school student numbers, goes well into the future.

As the western tourism market declines on Phuket, that will mean less western expats working here, and less advertising of Phuket as a retirement destination for westerners into the future, some of whom, may have started a relationship with a Thai women, which resulted in having a child or children.

I can't see the Chinese living here, either in retirement or business, en masse, and sending children to international schools. Also, I can't see the Russian ruble bouncing back anytime soon, so I don't see the Russians filling the void in international schools either.

Boarding may be a market they could turn to and boost their numbers, but there are several internationals schools in the major expat areas in Thailand, so, why wouldn't mum and dad want their kids around home?

Basically, I predict a declining birth rate of 50/50 kids on Phuket into the future, which makes this acquisition interesting.

[andreww]

Another money-making junket pretending to be an English Public School. Complete with faux Gothic Architecture.

And can you please name me a non-profit international school in Thailand? I'd be very interested to know.

FYI, Phuket International Academy (to become UWC Thailand in August)

http://www.phuketinternationalacademy.com/about-us/

• Status: Not-for-profit
• Established: 2008
• Curriculum: IB
• Accreditations: CIS, AFEC

• Affiliations: Earcos, Thanyapura
• Students: 327
• Nationalities: 43
• Ages: 18 months – 18 years

Edited June 8, 2016 by andreww

[KarenBravo]

18 months?

Who sends kids to school at a year and a half old?