BEIJING, Oct. 11, 2016 /PRNewswire/ -- China Distance
Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a
leading provider of online education in China focusing on professional education,
today announced that its majority-owned subsidiary Beijing Zhengbao
Yucai Education Technology Co., Ltd. ("Zhengbao Yucai") has
announced a share issuance plan on China's New Third Board, the over-the-counter
stock exchange. Under the plan, Zhengbao Yucai will issue no more
than 41,880,000 common shares, representing 40.5% of the total
outstanding shares of Zhengbao Yucai immediately after the share
issuance, to be priced at RMB1.91
($0.29) per common share. Total funds
raised by the share issuance are expected to be no more than
RMB80.0 million ($11.9 million). The proceeds from this share
issuance are expected to be used for working capital and business
development, which includes mergers or acquisitions of
complementary businesses focused on China's college market.
According to the plan, Mr. Zhengdong
Zhu, chairman and CEO of CDEL, and Mr. Liankui Hu, an
independent director of CDEL, will subscribe to 63.8% and 24.6% of
the total shares to be issued, respectively. Immediately following
the share issuance, the equity interest of CDEL in Zhengbao Yucai
will be reduced from 60.1% to 35.8%. Mr. Zhengdong Zhu, Mr. Liankui Hu and a partnership
holding equity interest in Zhengbao Yucai (in which Mr.
Zhengdong Zhu has a majority
interest) each has entered into an acting-in-concert agreement with
a wholly-owned subsidiary of the Company, requiring them to follow
the voting intentions of the Company's such subsidiary provided
each of their respective equity interests in Zhengbao Yucai is
lower than the Company's equity interest in Zhengbao Yucai.
Together, Mr. Zhengdong Zhu, Mr.
Liankui Hu and the aforementioned partnership will have a combined
equity interest in Zhengbao Yucai of 59.5% immediately after the
share issuance.
Zhengbao Yucai is listed on the New Third Board in an effort to
further enhance its brand and visibility within the China market, which offers it the opportunity
to raise capital from the Chinese capital markets to fund future
growth. In addition, Zhengbao Yucai's New Third Board listing
enables CDEL to focus its U.S.-listed company on professional
education businesses, while Zhengbao Yucai will focus on college
education opportunities.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. Forward-looking statements are not historical facts, but
instead are predictions about future events. Future events are
inherently uncertain, and our forward-looking statements may turn
out to be incorrect. The Company and Zhengbao Yucai may not realize
the anticipated benefits of the listing of Zhengbao Yucai's shares
and Zhengbao Yucai's new share issuance plan. The forward-looking
statements in this press release speak only as of the date on which
they are made, and we assume no obligation to update any
forward-looking statements except as required by law.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider
of online education in China
focusing on professional education. The courses offered by the
Company through its websites are designed to help professionals
seeking to obtain and maintain professional licenses and to enhance
their job skills through our professional development courses in
China in the areas of accounting,
healthcare, engineering & construction, and other industries.
The Company also offers other professional education courses for
the national judicial examination, online test preparation courses
for self-taught learners pursuing higher education diplomas or
degrees, test preparation courses for university students intending
to take the nationwide graduate school entrance exam, and online
language courses. We also offer third-party developed online
courses through our Online Open Learning Platform, a proprietary
education platform that allows people to share their educational
content or deliver live courses online. For further information,
please visit http://ir.cdeledu.com.
Contacts:
China Distance
Education Holdings Limited
Investor Relations
Department
Tel:
+86-10-8231-9999 ext 1805
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email:
dl@tpg-ir.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-subsidiary-zhengbao-yucai-announces-share-issuance-plan-on-chinas-new-third-board-300342532.html
SOURCE China Distance Education Holdings Limited