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."
There can be no assurance that (i) the Proposal Letter will not
be withdrawn, (ii) any definitive agreement relating to the
transaction as contemplated by the Proposal Letter will be entered
into, or (iii) the proposed transaction or any other similar
transaction will be approved or consummated. The Company does not
undertake any obligation to provide any updates with respect to
this or any other transaction, except as required under applicable
law.
About Ambow Education Holding Ltd.
Ambow Education Holding Ltd. is a leading national provider of
educational and career enhancement services, offering high-quality,
individualized services and products. With its extensive network of
regional service hubs complemented by a dynamic proprietary
learning platform and distributors, Ambow provides its services and
products to students in 15 out of the 34 provinces and autonomous
regions within China.
Follow us on Twitter: @Ambow_Education
Safe Harbor Statement
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. These forward-
looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about AMBO and the industry. All
information provided in this press release is as of the date
hereof, and AMBO undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although AMBO believes that the expectations
expressed in these forward-looking statements are reasonable, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
For investor and media inquiries, please contact:
Ambow Education Holding Ltd.
Tel: +86 10-6206-8000
The Piacente Group | Investor Relations
Tel: +1 212-481-2050 or +86 10-6508-0677
Email: ambow@tpg-ir.com
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SOURCE Ambow Education Holding Ltd.