ChinaEdu Corp. (CEDU), an online educational services provider in China, announced its board has received a preliminary, non-binding proposal letter from Julia Huang, executive chairman of the board and Shawn Ding, CEO of the company, to acquire all of the outstanding ordinary shares of the company not currently owned by them, and certain other shareholders who may join them as buyers. The proposed price is $2.33 in cash per ordinary share, or $7.00 in cash per ADS, subject to certain conditions.
The company said its board intends to form a special committee of disinterested directors to consider the proposal.
The acquisition is intended to be financed by debt and/or equity capital and the buyer parties have been in discussions with one or more financial institutions regarding the financing.
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