Raffles Education's (SGX:NR7) Chinese subsidiaries, Foodbev (Shanghai), Raffles Lasalle Education Consultancy (Shanghai) and Shanghai Shangxin Commercial Consulting, agreed to dispose of their stake in Hefei Yuren Education Management.

Shares of the company were down nearly 4% in Thursday trading.

The disposal of the entire 100% stake in Hefei was agreed for a total consideration of 426.4 million yuan, according to a Wednesday filing with the Singapore Exchange.

The purchaser is the sole promoter of Wanbo Science and Technology Vocational College, with the acquisition slated for completion by March 31, 2026.

The disposal is part of the company's strategic initiative to strengthen its balance sheet and to reduce liabilities.