SINGAPORE (Mar 6): Shares of Chip Eng Seng are up 1 cent to 93 cents after it announced plans to diversify into the education sector to provide a wider business and income base.

This comprises the construction, development and ownership, management and operations of educational programmes, products and services ranging in all levels from childcare centres to universities.

The construction group and property developer also plans to organise its business units into the construction segment; the property developments segment; the property investments segment; the hospitality segment and corporate services.

"The proposed new business will be reportable as a new segment of the group’s business – the education segment. The education segment will cover all business of the group which arises from or is in connection with the education sector," says Chip Eng Seng in a filing on Monday night.

Chip Eng Seng says the group intends to initially focus on the growth of the education segment but may consider expanding overseas.

Executive Director Tan Tee How, who was appointed as executive director of the company with effect from Feb 2, will have primary oversight of the education business.

An Extraordinary General Meeting (EGM) will be convened by the company to seek shareholders’ approval to approve the proposed diversification.

This story, written by PC Lee for The Edge Singapore, first appeared on March 6.