- China Online Education Group (NYSE:COE) has received a non-binding proposal letter from Mr. Jiajia Jack Huang, chairman of the Board and CEO of the company to acquire all of the company's businesses in China Mainland, including all associated liabilities and assets, its subsidiaries and the variable interest entities controlled by the company (Target Companies).
- The proposed purchase price for the Target Companies is $1 because Mr. Huang believes that the total enterprise value of the Target Companies is equivalent to the existing total liabilities and obligations of the Target Companies.
- The offer does not include the company's overseas business outside China Mainland and its associated liabilities and assets and will be the company's strategic focus going forward.
- The Board has formed a special committee to evaluate the proposed transaction.
- There can be no assurance that the proposed transaction or any other similar transaction will be approved or consummated.
- Shares up 1.75% premarket.