Ambow Education receives an offer for the company’s assets in China
BEIJING, September 20, 2022 /PRNewswire/ — Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE American: AMBO), today announced that its Board of Directors (the “Board”) has received a preliminary non-binding proposal letter (the “Proposal Letter”) ) of Clover Wealth Limited (“SPV”) to acquire all of the business assets of the Company in China. The sale of these assets is in line with applicable PRC regulatory requirements introduced in 2021.
Date September 13, 2022, the proposal letter outlines the SPV’s intention to acquire (i) all interests in the Company’s WFOEs and VIEs, and (ii) all intellectual property used in conducting the business of the WFOEs and VIEs and held by a subsidiary of the Company (the entities and assets described in (i) and (ii), representing substantially all of the assets of the Company other than the US assets of the Company, collectively the “Target”). The purchase price of the target is approximately $10 million.
In accordance with its fiduciary responsibilities, the board has begun to carefully evaluate the proposal letter to determine the course of action it believes is in the best interest of the company and its various stakeholders, including plans to engage an independent valuation company to assess the valuation of the target. . AMBO shareholders do not need to take any action at this time.
In parallel with the plan to sell its activities to Chinathe company also announced that Mr. KJ Tan, Chief Financial Officer of Ambow, has resigned, effective September 19, 2022. dr. Jin HuangChairman and Chief Executive Officer of Ambow, will serve as interim Chief Financial Officer until a replacement is appointed.
“Selling our assets in China gains us more resources and agility as we grow our business in the United States, namely our two recently acquired for-profit colleges and our advanced open platform technology,” commented Dr. Huang. “Today, we welcome the education sector in a position of strength as we work to institute technology-enabled learning in the vast education markets of the United States. »
There can be no assurance that (i) the Proposal Letter will not be withdrawn, (ii) a definitive agreement relating to the transaction as contemplated by the Proposal Letter will be entered into, or (iii) the proposed transaction or any other similar transaction will be approved or consummated. The Company undertakes no obligation to provide updates regarding this transaction or any other transaction, except as required by applicable law.
About Ambow Education Holding Ltd.
Ambow Education Holding Ltd. is one of the nation’s leading providers of education and career enhancement services, providing high quality personalized services and products. With its extensive network of regional service centers complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 15 of the 34 provinces and autonomous regions within China.
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Safe Harbor Statement
This press release contains forward-looking statements. These statements are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. You may identify these forward-looking statements by words such as “will”, “expect”, “believe”. , “anticipates”, “intends”, “estimates” and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about AMBO and the industry. All information provided in this press release is as of the date hereof, and AMBO undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, unless the law requires it. Although AMBO believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will prove to be correct, and investors are cautioned that actual results may differ materially from anticipated results.
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Ambow Education Holding Ltd.
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SOURCEAmbow Education Holding Ltd.