ATA Announces Private Equity Firm LHHY to Become a Buyer in ATA Online Transaction
June 27 2018 - 8:00AM
ATA Inc. ("ATA" or the "Company", (Nasdaq:ATAI), a
leading provider of advanced testing technologies and
testing-related services in China, today announced that ATA, three
of the four management buyers (the “Management Buyers”), holding
companies controlled by certain management members of ATA’s
subsidiary ATA Online (Beijing) Education Technology Co., Ltd.
(“ATA Online”), and certain other parties have entered into a Deed
of Assignment (the “Deed”) with Zhuhai Lihonghuaying Equity
Investment Partnership (LP) (the “LHHY Buyer”), a China-based
entity principally engaged in private equity investments, with
respect to the assignment of certain rights and obligations of the
Management Buyers under the previously announced share purchase
agreement into which ATA, the Management Buyers, and certain other
parties entered on February 6, 2018, with respect to the sale of
ATA Online (the “Share Purchase Agreement”).
Under the terms of the Deed, the Management
Buyers have agreed to assign all their rights and obligations to
purchase a total of 15% of the equity interests in ATA Online (the
“Assigned Shares”) to the LHHY Buyer, and the LHHY Buyer has agreed
to accept the assignment and assumption of all of the terms,
conditions, provisions and covenants on the part of the Management
Buyers under the Share Purchase Agreement with respect to such
Assigned Shares (except certain representations and warranties of
the Management Buyers relating to the source of funds and debt
financing which are not applicable to the LHHY Buyer), including
the obligation to pay the amount of US$30 million as the purchase
price for the Assigned Shares at the second closing outlined under
the Share Purchase Agreement.
After the Deed takes effect, the LHHY Buyer
shall have the right to purchase 15% of the equity interests in ATA
Online under the Share Purchase Agreement, and the percentage of
the equity interests in ATA Online that the Management Buyers have
the right to purchase under the Share Purchase Agreement shall
decrease from 22.1% to 7.1%.
As previously announced, the first of the three
closings under the Share Purchase Agreement was completed on April
4, 2018. The Company expects the second closing to take place in
early third quarter of 2018 with the entire transaction to be
completed later in the third quarter of 2018, subject to the
completion of related closing conditions.
The Company has also filed a Form 6-K containing
additional information about the Deed, which investors may access
on the SEC Filings page on ATA’s website or on the U.S. Securities
and Exchange Commission website at www.sec.gov.
About ATA Inc.ATA is a leading
provider of advanced testing technologies in China. The Company
offers comprehensive services for the creation and delivery of
assessments based on its proprietary testing technologies and test
delivery platform. ATA’s testing technologies are used for
professional licensure and certification tests in various
industries, including information technology services, banking,
teaching, asset management, insurance, and accounting. As of March
31, 2018, ATA’s test center network comprised 3,379 authorized test
centers located throughout China. The Company believes that it has
the largest test center network of any commercial testing service
provider in China.
ATA has delivered approximately 101.5 million
billable tests since ATA started operations in 1999. For more
information, please visit ATA’s website at www.atai.net.cn.
For more information on our company, please contact the
following individuals:
At the Company
ATA Inc.
Amy
Tung, Chief Financial Officer
+86 10 6518 1122
x5518
amytung@atai.net.cn
Investor
Relations
The Equity Group Inc. Carolyne Y. Sohn,
Senior Associate415-568-2255csohn@equityny.comAdam Prior,
Senior Vice
President212-836-9606aprior@equityny.com
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