logo
Plus   Neg
Share
Email

China Distance Education Receives Buyout Proposal From Co-founders - Quick Facts

Online education provider China Distance Education Holdings Ltd. (DL) announced Monday that its Board of Directors has received a preliminary non-binding proposal letter dated June 8, 2020 from Zhengdong Zhu, co-founder, chairman of the Board and chief executive officer of the Company, Baohong Yin, co-founder of the Company, deputy chairman of the Board and the spouse of Zhu and their affiliated entity to acquire all of the outstanding ordinary shares of the Company, including ordinary shares represented by American depositary shares (ADS), for $2.27 in cash per ordinary share, or $9.08 in cash per ADS.

The Buyer Group intends to fund the consideration for the proposed transaction with a combination of debt and/or equity capital. Equity financing is expected to be provided by the Buyer Group and from any additional equity investor who may be admitted to the Buyer Group. Debt financing is expected to be provided by loans from third party financial institutions.

The Board will consider the proposed transaction and evaluate the proposal or make any decision. However, there can be no assurance that any definitive offer will be made, that any definitive agreement will be executed.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Intel Corp. said it is probing into the hack of its fourth-quarter earnings report that prompted the chipmaker to release its earnings statement ahead of schedule. The company, which was scheduled to release the results after the market closed, released it before the market closing on Thursday. Google parent Alphabet decided to drop its Internet balloon project Loon that was launched with the idea of providing Internet access to rural areas and providing last mile connectivity. In a blog post, Loon CEO Alastair Westgarth said they have not found a way to get the costs low enough to build a long-term, sustainable business, despite gaining a number of interested partners along the way. American Airlines announced the launch of Flagship Cellars, its home delivery service for premium wines usually available onboard. The airline's move is said to be due to the excess wine it has amid the weakness in air travel demand following the coronavirus pandemic crisis. The company expects the new at-home wine program to generate about $40,000 to $50,000 in sales during the first quarter.
Follow RTT