ATA Outlines Corporate Strategy Following Sale of Testing Services Business and Payout of Special Dividend
August 24 2018 - 4:05PM
ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a
company focused on providing students with quality educational
experiences and services in China and abroad, today provided an
update on its long-term strategy following the completion of the
sale of its testing services business (the “Transaction”).
Investors may access additional information regarding the
Transaction on the SEC Filings page on ATA’s website or on the U.S.
Securities and Exchange Commission website at www.sec.gov.
With the Transaction completed, ATA no longer
conducts its testing development and delivery business and,
following the payout of the previously announced US$6.00 per ADS
special cash dividend to shareholders, expects to have
approximately US$23.0 million to US$26.0 million in cash from
proceeds received from the Transaction. The Company intends to use
this capital to explore potential merger and acquisition targets in
the education sector, such as the recently announced anticipated
acquisition of Beijing Biztour International Travel Service Co.,
Ltd. (“Beijing Biztour”), a provider of international educational
study tour and travel services for students in China who are
interested in overseas study tours primarily in the U.S., United
Kingdom, and Australia, while continuing to develop the Company’s
remaining businesses, which include:
- K-12 education assessment tools and content;
- the Nanjing University Project Shuang Chuang;
- the Research Project with the Education and Research Institute
of Tsinghua University; and
- minority strategic investments in certain education technology
companies, including Beijing Empower Education Online, Co., Ltd.,
ApplySquare Education & Technology Co., Ltd., Beijing
GlobalWisdom Information Technology Co., Ltd., Brilent, Inc.,
Beijing Satech Internet Educational Technology Ltd. and Master Mind
Education Company.
ATA intends to maintain its listing on the
Nasdaq Stock Market (the “Nasdaq”), and its reporting obligations
as a SEC-registered public company are unaffected by the
consummation of the Transaction.
Mr. Jack Huang, ATA’s President, stated, “We
continue to work closely with the Beijing Biztour team and have
already begun outlining plans to maximize the distribution network
throughout China to increase our reach to the growing population of
students seeking learning experiences through global travel. We
also expect to recruit additional leadership personnel to help us
move forward on our long-term goal of transforming ATA into a
leading international education service provider. As we work on
these growth initiatives, ATA fully expects to maintain its Nasdaq
listing, working to maximize shareholder interests with a goal of
returning value to our shareholders. With our expertise in
assessment/learning technologies and reputation within the
industry, we believe we are well positioned to execute on our
growth strategy. We look forward to speaking with investors about
our plans for the future in the coming weeks.”
About ATA Inc.ATA is focused on providing
quality educational experiences and services for students
throughout China and abroad. ATA aims to offer online, on-campus,
and other education programs through a network of global education
partners. For more information, please visit ATA’s website at
www.atai.net.cn.
Cautionary Note Regarding
Forward-looking StatementsThis 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
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terms such as
"believe," "could," "expect," "future," "look forward to," "plan,"
"should," "will," and similar terms. Examples of forward-looking
statements in this press release include statements about ATA’s
plan and efforts to transform itself into a leading international
education service provider; ATA’s anticipated acquisition of
Beijing Biztour and other potential targets, and subsequent
business activities; the anticipated benefits to ATA’s expansion
efforts into the international education market; and the ability of
ATA and Beijing Biztour to cooperate effectively and to introduce
offerings and build partnerships. These forward-looking statements
involve known and unknown risks and uncertainties, are based on
current expectations, assumptions, estimates, and projections by
both ATA and Beijing Biztour, and are subject to governmental
approvals and other conditions. The Company undertakes no
obligation to update forward-looking statements, except as may be
required by law. The Company cannot assure you that its
expectations and assumptions will turn out to be correct, and
investors are cautioned that actual results may differ materially
from the anticipated results.
For more information on our company, please contact the
following individuals:
At the Company |
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Investor Relations |
ATA Inc. |
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The Equity Group
Inc. |
Amy Tung, Chief
Financial Officer |
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Carolyne Y. Sohn,
Senior Associate |
+86 10 6518 1122
x5518 |
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415-568-2255 |
amytung@atai.net.cn |
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csohn@equityny.com |
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Katherine Yao, Senior
Associate |
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+86 10 6587 6435 |
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kyao@equityny.com |
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Adam Prior, Senior Vice
President |
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212-836-9606 |
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aprior@equityny.com |
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