Noah Education Enters Into Agreement to Acquire Wentai Education
Poster: SySAdmin
Posted on March 15, 2010 at 8:49:01 AM
Noah Education Enters Into Agreement to Acquire Wentai Education
SHENZHEN, China, March 15 -- Noah Education (NYSE:NED) ("Noah" or the "Company"), a leading provider of interactive educational content and education services in China, announced today it has signed a definitive agreement to acquire a 70% interest in Shenzhen Wentai Education Industry Development Co., Ltd ("Wentai Education"), a company focused on early childhood, primary and secondary education services in China, for a total consideration of RMB126 million to be funded by the Company's current cash reserve. The move represents an important milestone for Noah, underscoring the execution of its strategy of expanding within the education services business. The transaction is expected to close by June 1, 2010 and will be subject to customary closing conditions and regulatory approvals.
Founded in 2002, Wentai Education specializes in operating and managing schools for students aged 3-18, with the goal of providing high-end, top-quality education. Its management team, which has decades of experience in the education services sector and a proven track record of successfully managing and growing an education services business, will retain a 30% stake in Wentai Education.
Leveraging its expertise in education services and management, Wentai Education's management team implements a rigorous, well-structured curriculum at each of its schools to provide students with a profound and comprehensive understanding of the subject matter. Wentai Education currently manages six kindergartens and four primary schools in five cities in Guangdong Province: Guangzhou, Foshan, Shenzhen, Dongguan and Huizhou. All of its schools are bilingual, with Chinese and English as the teaching mediums. Recognized as top-tier in their respective cities for quality of education, Wentai Education has a total student enrollment of over 5,000, and faculty and staff numbering approximately 580. In addition, the schools are able to provide enrichment programs, summer camps and before- and after-school programs.
Of the RMB126 million investment, RMB90 million will be used for expansion. Funded with the fresh capital provided by Noah, Wentai Education plans to expand its reach by operating new schools in newly developed communities and by making acquisitions across the country. Wentai Education recorded revenue of RMB49 million in 2009, and expects to see accelerated growth with the execution of its growth plans.
Mr. Dong Xu, Noah's chairman and chief executive officer, said, "We are very pleased to announce another significant inroad into the education services business, which offers great growth potential and recurring cashflow, as well as high margins. Wentai Education's emphasis on educational excellence for early education, primary and secondary school aged children is an ideal complement to our existing business. In line with our strategy to increase our footprint in the education services space, this second acquisition will further increase our revenue streams from our high-growth education services business, and is accretive to earnings upon completion. Furthermore, the bilingual nature of Wentai Education's schools presents synergistic opportunities with Little New Star, and facilitates international partnerships. Additionally, we will be able to enhance our research & development initiatives by using Wentai Education as a testing ground for our interactive content and devices.
"We are also delighted that Wentai Education's existing management team will join us to build our education services business. The team's experience in education management will be a valuable resource for our education services business. With the rich experience they bring to Noah, combined with the fresh capital, Wentai Education will serve as a strong platform for organic and acquisitive growth across our education services business.
"As China's education industry remains nascent and fragmented, Noah's core offering of electronic learning products, coupled with the education services provided by Wentai Education and Little New Star, no doubt place us at the forefront of a vast and growing market. This transaction is an important milestone in Noah's growth story, as it underscores our ability to execute on strategy in order to become the leading provider of interactive educational content and education services in China. I am confident that our ongoing efforts to broaden our customer base, service offerings and operational platform will ultimately translate into long-term, sustainable value for our shareholders," Mr. Xu concluded.
About Noah
Noah Education Holdings Limited is a leading provider of interactive educational content and education services in China. Noah's core offering includes the development and marketing of interactive educational courseware content, electronic learning products (ELPs), software, kids' English training and after-school education services. Noah combines standardized educational content with innovative digital and multimedia technologies to create a dynamic learning experience and improve academic performance for kids in China aged 3-19. Noah has developed a nationwide sales network, powerful brand image, and accessible and diverse delivery platforms to bring its innovative content to the student population. Noah also provides a kids' English training service under the brand Little New Star in its direct-owned schools and approximately 700 franchise schools throughout China. Noah was founded in 2004 and is listed on the New York Stock Exchange under the ticker symbol NED.
Forward-Looking Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's final prospectus filed with the Securities and Exchange Commission on September 24, 2007, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Investor Contact:
Jerry He
CFO and Executive Vice President
Noah Education Holdings Ltd
Tel: +86-755-8204-9263
Email: jerry.he@noahedu.com
Investor Relations (US):
Kelly Gawlik
Taylor Rafferty
Tel: +1-212-889-4350
Email: noahedu@taylor-rafferty.com
Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: +852-3196-3712
Email: noahedu@taylor-rafferty.com
Source: Noah Education Holdings Limited
CONTACT: Investor Contact: Jerry He, CFO and Executive Vice President of
Noah Education Holdings Ltd, +86-755-8204-9263, or jerry.he@noahedu.com; Or
Investor Relations (US): Kelly Gawlik of Taylor Rafferty, +1-212-889-4350, or
noahedu@taylor-rafferty.com; Or Investor Relations (HK): Ruby Yim of Taylor
Rafferty, +852-3196-3712, or noahedu@taylor-rafferty.com
SHENZHEN, China, March 15 -- Noah Education (NYSE:NED) ("Noah" or the "Company"), a leading provider of interactive educational content and education services in China, announced today it has signed a definitive agreement to acquire a 70% interest in Shenzhen Wentai Education Industry Development Co., Ltd ("Wentai Education"), a company focused on early childhood, primary and secondary education services in China, for a total consideration of RMB126 million to be funded by the Company's current cash reserve. The move represents an important milestone for Noah, underscoring the execution of its strategy of expanding within the education services business. The transaction is expected to close by June 1, 2010 and will be subject to customary closing conditions and regulatory approvals.
Founded in 2002, Wentai Education specializes in operating and managing schools for students aged 3-18, with the goal of providing high-end, top-quality education. Its management team, which has decades of experience in the education services sector and a proven track record of successfully managing and growing an education services business, will retain a 30% stake in Wentai Education.
Leveraging its expertise in education services and management, Wentai Education's management team implements a rigorous, well-structured curriculum at each of its schools to provide students with a profound and comprehensive understanding of the subject matter. Wentai Education currently manages six kindergartens and four primary schools in five cities in Guangdong Province: Guangzhou, Foshan, Shenzhen, Dongguan and Huizhou. All of its schools are bilingual, with Chinese and English as the teaching mediums. Recognized as top-tier in their respective cities for quality of education, Wentai Education has a total student enrollment of over 5,000, and faculty and staff numbering approximately 580. In addition, the schools are able to provide enrichment programs, summer camps and before- and after-school programs.
Of the RMB126 million investment, RMB90 million will be used for expansion. Funded with the fresh capital provided by Noah, Wentai Education plans to expand its reach by operating new schools in newly developed communities and by making acquisitions across the country. Wentai Education recorded revenue of RMB49 million in 2009, and expects to see accelerated growth with the execution of its growth plans.
Mr. Dong Xu, Noah's chairman and chief executive officer, said, "We are very pleased to announce another significant inroad into the education services business, which offers great growth potential and recurring cashflow, as well as high margins. Wentai Education's emphasis on educational excellence for early education, primary and secondary school aged children is an ideal complement to our existing business. In line with our strategy to increase our footprint in the education services space, this second acquisition will further increase our revenue streams from our high-growth education services business, and is accretive to earnings upon completion. Furthermore, the bilingual nature of Wentai Education's schools presents synergistic opportunities with Little New Star, and facilitates international partnerships. Additionally, we will be able to enhance our research & development initiatives by using Wentai Education as a testing ground for our interactive content and devices.
"We are also delighted that Wentai Education's existing management team will join us to build our education services business. The team's experience in education management will be a valuable resource for our education services business. With the rich experience they bring to Noah, combined with the fresh capital, Wentai Education will serve as a strong platform for organic and acquisitive growth across our education services business.
"As China's education industry remains nascent and fragmented, Noah's core offering of electronic learning products, coupled with the education services provided by Wentai Education and Little New Star, no doubt place us at the forefront of a vast and growing market. This transaction is an important milestone in Noah's growth story, as it underscores our ability to execute on strategy in order to become the leading provider of interactive educational content and education services in China. I am confident that our ongoing efforts to broaden our customer base, service offerings and operational platform will ultimately translate into long-term, sustainable value for our shareholders," Mr. Xu concluded.
About Noah
Noah Education Holdings Limited is a leading provider of interactive educational content and education services in China. Noah's core offering includes the development and marketing of interactive educational courseware content, electronic learning products (ELPs), software, kids' English training and after-school education services. Noah combines standardized educational content with innovative digital and multimedia technologies to create a dynamic learning experience and improve academic performance for kids in China aged 3-19. Noah has developed a nationwide sales network, powerful brand image, and accessible and diverse delivery platforms to bring its innovative content to the student population. Noah also provides a kids' English training service under the brand Little New Star in its direct-owned schools and approximately 700 franchise schools throughout China. Noah was founded in 2004 and is listed on the New York Stock Exchange under the ticker symbol NED.
Forward-Looking Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's final prospectus filed with the Securities and Exchange Commission on September 24, 2007, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Investor Contact:
Jerry He
CFO and Executive Vice President
Noah Education Holdings Ltd
Tel: +86-755-8204-9263
Email: jerry.he@noahedu.com
Investor Relations (US):
Kelly Gawlik
Taylor Rafferty
Tel: +1-212-889-4350
Email: noahedu@taylor-rafferty.com
Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: +852-3196-3712
Email: noahedu@taylor-rafferty.com
Source: Noah Education Holdings Limited
CONTACT: Investor Contact: Jerry He, CFO and Executive Vice President of
Noah Education Holdings Ltd, +86-755-8204-9263, or jerry.he@noahedu.com; Or
Investor Relations (US): Kelly Gawlik of Taylor Rafferty, +1-212-889-4350, or
noahedu@taylor-rafferty.com; Or Investor Relations (HK): Ruby Yim of Taylor
Rafferty, +852-3196-3712, or noahedu@taylor-rafferty.com