Tarena rallies on merger agreement with Kidedu for going private transaction
Apr. 30, 2021 8:25 AM ETTarena International, Inc. (TEDU)TEDUBy: Khyathi Dalal, SA News Editor4 Comments
- Tarena International (NASDAQ:TEDU) trades 10.4% higher premarket after entering into a merger agreement with Kidedu Holdings and its wholly-owned subsidiary Kidarena Merger Sub wherein Kidedu will merge into Tarena in a transaction implying an equity value of of ~$230.6M.
- Tarena will be the surviving company and will become a wholly owned subsidiary of Kidedu.
- Post the merger agreement, each ADSs representing one Class A ordinary share will be cancelled in exchange for the right to receive $4 in cash per ADS without interest.
- The merger consideration represents a premium of ~27.4% to the Dec.7 closing price of ADSs and will be funded through cash contribution by Ascendent Capital Partners III or its affiliates.
- Merger expected to close in Q3.
- In December first week, the company had received non-binding proposal letter from its chairman for going private.