ChinaEdu to Repurchase Shares and Cancel Warrants Owned by Tiger Global
November 25 2008 - 1:00AM
PR Newswire (US)
BEIJING, Nov. 25 /PRNewswire-Asia-FirstCall/ -- ChinaEdu
Corporation (NASDAQ:CEDU) ("ChinaEdu" or the "Company"), an
educational services provider in China, announced the signing of a
share repurchase agreement with Tiger Global Private Investment
Partners II, L.P. and Tiger Global II, L.P. (collectively "Tiger
Global") for an aggregate of 8,364,634 ordinary shares (2,788,211
American depositary shares, or ADSs) at $3.95 per ADS ($1.3167 per
ordinary share), which represents the closing price per ADS on
November 19, 2008 (the day preceding the signing of the share
repurchase agreement), for an aggregate purchase price of
approximately $11 million. The agreement also stipulates that all
warrants held by Tiger Global, which represent the right to
purchase an aggregate of 1,768,300 ordinary shares of the Company,
shall be cancelled in connection with this transaction. The
8,364,634 ordinary shares and warrants to purchase 1,768,300
ordinary shares represent all of the ordinary shares and warrants
beneficially owned by Tiger Global, and constitute approximately
14.5% of ChinaEdu's issued ordinary shares outstanding as of
September 30, 2008. "Tiger Global was one of our Series B
investors, having invested in ChinaEdu in December 2004. They have
been a valued investor and played an important role in our growth
prior to our listing on the NASDAQ Global Market," said Ms. Julia
Huang, ChinaEdu's Chairman and Chief Executive Officer. "When Tiger
Global informed us of its intention to liquidate their dedicated
China education fund, which had invested only in New Oriental
Education and ChinaEdu, we believed this presented an attractive
investment opportunity to accelerate our share repurchase program."
The Company's management team, together with its Board of
Directors, believes the share repurchase transaction is in the best
interest of the Company and its shareholders. This decision also
demonstrates the management's confidence in the Company's long-term
growth and profitability. The share repurchase and cancellation of
the warrants will result in an immediate increase in our earnings
per share. About ChinaEdu 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 and support
for international curriculum programs. 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 strategic relationships with 22 universities to
support its online degree programs, twelve of which are under
long-term, exclusive contracts that vary from 15 to 50 years in
length. Forward-Looking Statement 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 Form 20-F for the
year ended December 31, 2007, 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 more
information, please contact: Company Contacts: Lily Liu, CFO
ChinaEdu Corporation Phone: +86-10-8418-6655 x1002 Email: S. Jimmy
Xia, IR Manager ChinaEdu Corporation Phone: +86-10-8418-6655 x1150
Email: DATASOURCE: ChinaEdu Corporation CONTACT: Lily Liu, CFO,
+86-10-8418-6655 x1002, or , or S. Jimmy Xia, IR Manager,
+86-10-8418-6655 x1150, or , both of ChinaEdu Corporation
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