ChinaEdu Corporation Completes Privately Negotiated and Open Market
Share Repurchases
BEIJING, Feb. 7, 2013 /PRNewswire/ -- ChinaEdu Corporation
(NASDAQ: CEDU) ("ChinaEdu" or the "Company"), a leading online
educational services provider in China, announced today that it has completed
privately negotiated transactions with Columbia Pacific Advisors,
LLC, Lake Union Capital Management, LLC, New Vernon Investment
Management LLC and associates, HC PRCEDU LLC, Pretty Wisdom
Management Ltd. and J. Steven
Emerson. In aggregate, the Company repurchased 5,467,902
American Depositary Shares ("ADSs"), each representing three (3)
ordinary shares of ChinaEdu, at a purchase price of $5.60 per ADS (or $1.87 per ordinary share).
The Company also completed privately negotiated transactions
with Bessemer Venture Partners VI Institutional L.P., Bessemer
Venture Co-Investment L.P. and Bessemer Venture Partners VI L.P.,
repurchasing 2,202,709 ordinary shares (equivalent of 734,236 ADSs)
at a purchase price of $1.87 per
ordinary share (equivalent to $5.60
per ADS). In addition to the above privately negotiated
transactions, the Company also repurchased 277,316 ADSs from the
open market at $5.60 per ADS. The
total purchase price of these share repurchases was approximately
$36.3 million, which was financed by
a bank loan and the Company's own capital. The shares repurchased
by the Company represented approximately 36% of the Company's total
ordinary shares issued and outstanding.
ChinaEdu's executive chairman Julia
Huang commented, "Today's successful completion of the stock
repurchase reflects the board of directors' continued confidence in
the Company's near and long term financial and operating goals as
well as its continued commitment to enhancing stockholder value.
Other factors being equal, the stock repurchase will increase the
Company's earnings per share."
The board of directors of ChinaEdu authorized the repurchases
and the obtainment of financing given ChinaEdu's current financial
and operating performance, available capital surplus, future
prospects, current market conditions and other strategic planning
considerations.
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, support for international and elite curriculum
programs and online learning community for adult students.
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 entered into collaborative alliances with 12
universities, ranging from 10 to 50 years in length. The Company
has also entered into technology agreements with 6 universities.
Besides, ChinaEdu performs recruiting services for 22 universities
through nationwide learning center network.
Forward-Looking Statements
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, 2011, 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 investor and media inquiries, please contact:
Helen Plummer
Senior Investor Relations Coordinator
ChinaEdu Corporation
Phone: +1 908-442-9395
E-mail: helen@chinaedu.net
Simon Mei
Chief Financial Officer
ChinaEdu Corporation
Phone: +86 10 84187301
E-mail: simon@chinaedu.net
SOURCE ChinaEdu Corporation