Gelonghui December 14?Zhonghui Group (00382.HK) $It is announced that on December 14, 2021, Guangzhou Zhiyi Education and Shenzhen Zhuochuang Education (as the assignee of the sales shares designated by Guangzhou Zhiyi Education) entered into an acquisition agreement with Nanning Yuzhuoqin Education (as the seller) and the Target Group, pursuant to which Guangzhou Zhiyi Education intends to acquire 100% equity interest in Guangdong Taiyang City Industrial Co., Ltd., the target company, for 150 million yuan.
As a condition of the completion of the acquisition agreement, Guangzhou Zhiyi Education will enter into a structural contract with the registered shareholders and the operating company group, through which Guangzhou Zhiyi Education will effectively control the operating company group. and will enjoy the economic benefits generated by the operating company group.
It is reported that the target company owns all the shares of the target school Guangdong Chinese Business Technical School / the rights and interests of the school organizers. Guangdong Chinese Business Technical School is a private school registered as a private non-enterprise unit in accordance with Chinese law. It was approved by the Ministry of Labor and Social Security of Guangdong Province in 2007. It is mainly engaged in providing secondary vocational training services. The target school offers 13 major majors, including "early childhood education", "medicine marketing", "beauty care", "e-commerce", "accounting" and "marketing" and so on. The wide range of curriculum arrangements in target schools can not only meet the individual needs of students and potential students, but also attract more students to sign up for these courses and provide students with more types and diversity of courses.
The company believes that the acquisition will bring attractive growth potential in China's secondary vocational training services market to the Group, thereby achieving more diversified and faster revenue growth for the Group.
The Directors also believe that the acquisition will complement the Group's existing school network. This will enable the Group to further expand its school portfolio. Therefore, the Directors consider that the acquisition is an important horizontal expansion of the Group's existing business.