ChinaEdu Corporation Announces Privately Negotiated Share Repurchase
BEIJING, Jan. 16, 2013
BEIJING, Jan. 16, 2013 /PRNewswire/ -- ChinaEdu Corporation (NASDAQ: CEDU)
("ChinaEdu" or the "Company"), a leading online educational services provider
in China, announced today that it has entered into definitive agreements with
Columbia Pacific Advisors, LLC, Lake Union Capital Management, LLC and New
Vernon Investment Management LLC, pursuant to which ChinaEdu will repurchase
5,175,456 American Depositary Shares (the "ADSs") in the aggregate, each
representing three (3) ordinary shares of ChinaEdu, at a purchase price of
$5.60 per ADS (or $1.87 per ordinary share) for a total purchase price of
approximately $29 million through privately negotiated transactions, subject
to obtaining necessary financing by the Company.
ChinaEdu's chief executive officer Shawn Ding commented, "The announcement
today of the stock repurchase agreements reflects the board of directors'
continued confidence in the Company's near and long term financial and
operating performance as well as continued commitment to enhancing stockholder
The board of directors of ChinaEdu authorized the repurchases and the
obtainment of financing given ChinaEdu's current financial and operating
performance, available capital surplus, future prospects, current market
conditions and other strategic planning considerations.
ChinaEdu Corporation is an educational services provider in China,
incorporated as an exempted limited liability company in the Cayman Islands.
Established in 1999, the Company's primary business is to provide
comprehensive services to the online degree programs of leading Chinese
universities. These services include academic program development, technology
services, enrollment marketing, student support services and finance
operations. The Company's other lines of businesses include the operation of
private primary and secondary schools, online interactive tutoring services
and providing marketing, support for international and elite curriculum
programs and online learning community for adult students.
The Company believes it is the largest service provider to online degree
programs in China in terms of the number of higher education institutions that
are served and the number of student enrollments supported. The Company
currently has entered into collaborative alliances with 12 universities,
ranging from 10 to 50 years in length. The Company has also entered into
technology agreements with 6 universities. Besides, ChinaEdu performs
recruiting services for 22 universities through nationwide learning center
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including certain plans,
expectations, goals, and projections, which are subject to numerous
assumptions, risks, and uncertainties. Forward-looking statements involve
known and unknown risks, uncertainties and contingencies, many of which are
beyond our control which may cause actual results, levels of activity,
performance or achievements to differ materially from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements. The Company's actual results could differ
materially from those contained in the forward-looking statements due to a
number of factors, including those described under the heading "Risk Factors"
in the Company's Annual Report on Form20-F for the year ended December31,
2011, and in documents subsequently filed by the Company from time to time
with the Securities and Exchange Commission. Unless required by law, the
Company undertakes no obligation to (and expressly disclaim any such
obligation to) update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
For investor and media inquiries, please contact:
Senior Investor Relations Coordinator
Phone: +1 908-442-9395
Investor Relations Manager
Phone: +86 15711096022
SOURCE ChinaEdu Corporation
Press spacebar to pause and continue. Press esc to stop.