The firm’s share dropped by as much as 5.3 per cent following the fund raising move announcement, the worst decline in quite some time. The firm is considering to convert every of its preferred shares into one voting stock. Under its plans, its shareholders who will vote on the plans will be given a single voting share for every seven they already own.

The details of the share offer were revealed in a regulatory filing Anhanguera Educacional Participacoes submitted to the Sao Paolo bourse Thursday. The Valinhos, Brazil-based Company also said it plans to list its stock on the Novo Mercado section of the Sao Paulo exchange. However, analysts have estimated the sale at about 633 million reais ($380.6 million), with the proceeds expected to support future mergers and acquisitions.

Anhanguera Educacional Participacoes SA (AESA) is a Brazil-based private, for-profit professional education company. The Company offers teaching graduate and postgraduate courses and through the distance and professional courses, preparatory courses for competitions and courses extension.

The Company AESA is a holding company which directly and indirectly controls and supports the operations of all of its campuses. As of December 31, 2009 the Company owned 100% of the capital of Anhanguera Educacional SA, Anhanguera Educacao Profissional Ltda, LFG Business e Participacoes. During the fiscal year ended December 31, 2009, the Company acquired all the shares of capital of Centro de Ensino Superior de Goiania Ltda.

The share issue is expected to give the firm a robust funding base from which it should be able to advance its operations in Brazil. Even though the announcement has been by the minor drawback in terms of the declined trading share price, analysts expect the Brazilian education firm will be able to overcome it and perform impressively.

The funds will target investments geared at increasing Anhanguera Educacional Participacoes SA offering and portfolio and reinforcing its placement in the Brazilian higher education sector. Private universities and colleges make up a large percentage of higher education institutions in Brazil, a country with wide disparities in education between the societal classes.

The investment is expected to reinforce the growth of Pearson’s fast burgeoning education business and will be undertaken in two parts. The first part of the deal will see Pearson remit about 70% of the 326 million pounds to the Zaher family, Sistema Educacional Brasileiro’s majority shareholder while the other 30% will go directly into paying for the publicly quoted shares of the Brazilian firm.

However, the gain for Pearson, according to the company, will come from an increased presence in the Brazilian market given the fact that Sistema is a leading industry player in the country in the provision of systems for the education industry. According to current estimates, Sistema provides learning systems that sustain about 450,000 primary and secondary school goers and teachers as well.

On the other hand, the Brazilian firm is expected to enhance its earnings one year after it joins the Pearson Company. Pearson’s international education company chief, John Fallon revealed the company had been considering investments in Brazil given the size and the growth potential of the Latin American country’s education sector. The company had focused on Brazil for quite some time and was awaiting an opportunity, Brazil is Latin America’s biggest economy and its fast growth offers potential for more business, said the chief executive.

He further added that the acquisition of Sistema’s learning systems business offers the company a dynamic partner, reiterating the Brazilian company’s effectiveness and expertise in the Brazilian education sector that has given it lots of reputation. Fallon said the acquisition would also offer a stage for the company to set up a more robust and considerable business in the Latin America content, subsequently enabling Pearson, in the long run provide a wider and incorporated education services.

Pearson is an international media as well as education company and has businesses in the information, education and consumer publishing markets. Its products and services are in the form of newspapers, books, online services e.g. the Financial Times and Pearson.