Raffles Education Corp. (E6D.SG) is off 3.3% at $0.295, its lowest level since March last year, says Dow Jones.

Sentiment, already hurt by slowing earnings growth, further dampened by private equity group AIF Capital’s pullout from non-binding agreement to take 10% stake in company’s Oriental University City due to recent global economic, market conditions.

OCBC, which has Hold call with $0.37 target, says AIF’s move marks “big setback” to Raffles Education’s plans to monetise OUC “as REC and AIF had only signed a non-binding term sheet between them, we believe REC is unlikely to receive any compensation”.

Deal would have given REC $70 million capital boost if implemented. Orderbook quotes suggest minimal downside below $0.28.