Mubasher: Dubai-based GEMS Education is in advanced talks to invest in Maarif for Education and Training chain of schools, the largest owner and operator of private schools in Saudi Arabia, people familiar with the matter told Bloomberg News.

The deal is expected to be signed between the two parties at a value of $400 million, the people who asked not to be identified said.

Samba Capital will act as an advisor for owners seeking to sell all or part of the company, the people added, pointing out that the company has not made any final decision as the plans could change.

Maarif, owned by the Al Blehed family, operates over 100 schools across Saudi Arabia, offering accredited Arabic and international curriculums, according to its official website.

A spokesman from GEMS Education declined to comment, while Maarif and Samba did not respond to requests for comment.

Saudi Arabia aims to gradually stop hinging on oil under Vision 2030 and encourage private-sector participation in education.

Schools in the GCC kingdom will require more than million additional seats in grades 1-12 by 2020, including around 150,000 that should come from nearly 800 new private schools, according to a report by PwC Middle East.

Blackstone Group-backed GEMS has been expanding in the Middle East and Africa by acquiring other school operators ahead of a possible stake sale to a private-equity firm or through an initial public offering (IPO).

In October, sources revealed that  US private equity firm Blackstone, as well as other investors in GEMS, were mulling over the sale of a 25% stake in the Emirati school operator after the IPO was postponed.