Ambow Education Receives Bid for Company's Assets in China
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") from Clover Wealth Limited ("SPV") to acquire all of the Company's business assets in China. The sale of these assets is in-line with applicable PRC's regulatory requirements introduced in 2021
BEIJING, Sept. 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") from Clover Wealth Limited ("SPV") to acquire all of the Company's business assets in China. The sale of these assets is in-line with applicable PRC's regulatory requirements introduced in 2021.
Dated September 13, 2022, the Proposal Letter outlines the SPV's intent to acquire (i) all of the equity interests in WFOEs and VIEs of the Company, and (ii) all of the intellectual properties used in the conduct of business of WFOEs and VIEs and owned by a subsidiary of the Company (the entities and assets described in (i) and (ii), representing substantially all assets of the Company other than the Company's U.S. assets, collectively the "Target"). The purchase price for the Target is approximately $10 million.
Consistent 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 firm to assess the Target's valuation. AMBO shareholders do not need take any action at this time.
Along with the proposed sale of its operations in China, the Company also announced that Mr. KJ Tan, Ambow's Chief Financial Officer, has resigned, effective September 19, 2022. Dr. Jin Huang, President and Chief Executive Officer of Ambow, will serve as Acting Chief Financial Officer until a replacement is appointed.
"Disposing of our assets in China gains us more resources and agility as we advance our U.S. business, namely our two recently acquired for profit colleges and our advanced open platform technology," commented Dr. Huang. "Today, we greet the education sector from a position of strength as we work to institute technology-driven learning in the vast U.S. education markets."
