Amber Education privatization aborted: Baring Asian withdrawal bid

In recent days, the privatization of the amber education has attracted much attention, but it has been dramatic in less than half a month. Amber's shares soared 53.47% per cent on March 15, when Baring Asia announced an offer to launch an privatisation bid for the amber education. Subsequently, there was a series of turmoil in the amber Education: three directors submitted their resignation letter, the independent auditor PwC resigned, and FENWICK&WESTLLP law firm resigned as legal advisor to the Audit Committee.　　The privatisation ended 26th with an announcement by Amber education that Baring Asia withdrew its non-binding takeover bid.　　Some industry experts pointed out that during this round of privatization, the internal control of the amber Education, audit and other issues exposed, and PwC's resignation of the 2012 annual report is not timely submission of the issue, but also the biggest threshold for amber education. Baring Asia turns away as an investment agency that has been paying attention to education and training, Baring Asia has had a long time with amber Education, which was previously owned by Campusholdingslimited, the CEO of Huang Asia and Amber Education, and bought about 5.95 million ads,　　Jianbo Education IPO Financing 78% of the circulation. On March 15, the Baring Asia PE fund proposed the privatization of the amber education in 1.46 dollars per ADS (US depository), which was interpreted by the industry as the best choice for Amber education, and believes that the baring side has reached a consensus with the management of amber that it is not very difficult to privatize.　　However, more than 10 days later, Baring Asia announced the withdrawal of its non-binding takeover offer.　　The baring explanation is: first, after the takeover offer, Amber Education three independent directors resigned; second, the Amber independent auditor PwC resigned; third, March 22, the shares of the amber education were suspended. Li Ying wanted, a U.S. stock analyst, told the Daily economic news reporter that the privatisation offer by Baring Asia was non-binding, and that the offer could be withdrawn at any time prior to the announcement of the privatisation of the Amber shareholders ' meeting.　　This means that its privatization process for the education of Amber is over.　　Interestingly, in the recall letter, the Baring side also shows that once the amber education solves the current problem, it is still willing to consider all or part of the potential acquisition of Amber Education.　　It is understood that the normal privatization events, whether the eventual success or not, on the performance of listed companies should not cause too much impact. The aftermath of the privatization fiasco it is noteworthy that this privatization has made public the internal contradictions of the amber education. Earlier, three directors in the letter of resignation, all said that with the management of irreconcilable contradictions and recent events has made it unable to effectively complete the function. In addition, the lack of internal control of the amber education has been mentioned several times.　　The resignation of PwC, the audit body, has allowed the industry to judge that its 2012 annual report is largely out of time. "These issues have made it a less positive impression on investors and those who care about amber education," he said. In the past some time, everybody is concerned about its listing before, on the mergerWhether there is a trick. The many variables appearing in privatization have made investors more and more skeptical about their internal control.　　"Some industry experts say.　　Some analysts say that if the amber education does not submit its annual report on time, it may face inquiries and investigations, or even exit the city. In Li Ying wanted's view, if the amber back to the city, it will certainly have a certain impact on its brand, and generate related lawsuits.　　Because of the low level of overlap between consumers and investors in amber, the impact on their specific business may not be that big. It is understood that founded in 1999, the Amber Education, the initial business is mainly the laying of web-based education platform, 2008 began to provide training through a large acquisition of teaching services directly.　　The data show that as of September 30, 2010, the amber nationwide acquisition of nearly 30, costing more than 1.4 billion yuan. Because of the decentralization of education and training in China, many local institutions are difficult to scale, and the "people paddle to open a big boat" thinking at that time for many founders is very tempting.　　Now the problem of Amber's exposure to mergers and controls has allowed the industry to begin to question the feasibility of developing education and training enterprises in the form of large-scale mergers and acquisitions. And June Consulting senior consultant Hourich told the Daily economic news reporter, relative to manufacturing, the service industry mergers and acquisitions more difficult, especially the education and training industry.　　The education brand from build to establish, its content production, teacher training, curriculum design and so on are relatively complex. An industry analyst, who declined to be named, said that most of the management of amber Education was capital-run and was not particularly knowledgeable about the education and training industry. Amber's acquisition of these schools is good, but lack of integration after the merger capacity.