Hongcheng Education set up a special Committee to assess privatization programmes

Hongcheng Education announced last night that the company's board of trustees had set up a special committee to assess the privatisation offer. At the end of last month, Hongcheng Education received a takeover offer from management: Board Executive Chairman Yellow and CEO Ding Xiangdong launched a non-binding privatisation offer to buy all foreign shares in cash at the price of $ ADS7 per dollar. In order to complete the acquisition, Hongcheng Education management is negotiating with a number of banks to finance. 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. 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.