Hongcheng Education receives management privatisation offer

Hongcheng Education announced a takeover offer from management: Board Executive Chairman Yellow and CEO Ding Xiangdong launched a non-binding privatisation offer to buy all foreign shares at the price of $ ADS7 per dollar. In order to complete the acquisition, the current education management is to negotiate with a number of banks, for the acquisition of financing. In addition, the Hong Cheng Education Board plans to form a special committee to evaluate the takeover offer. The 7 dollar/ads bid, teaching the previous session's closing price at a premium of 20%. Hongcheng education currently has about 18.4 million shares in circulation (about 6.13 million ads), which means that it will take about 43 million dollars to complete privatization. Boosted by privatisation news, Hong's education surged 5.31% per cent to 6.15 dollars yesterday. Hongcheng Education is a veteran education and training company, its 101 schools, Hong Cheng Study Court, December 2007 landed Nasdaq, opening 10 U.S. dollars, raising 68.2 million U.S. dollars.