OnlyEdu, a Shanghai-based edtech company, plans to sell 432,007 shares of Chungdahm Learning (CDL), a South Korea-based education company. These shares were worth RMB70.2 million based on the stock price on 7 September, according to a statement Monday.
Founded in 1988 and went public on KOSDAQ in 2008, CDL is focused on providing English and math courses for K-12 students. The company mainly operates its business in the local market and Southeast Asia.
Back in July 2018, OnlyEdu decided to buy part of CDL’s stocks to offer premium English tutoring services for K-12 students. Two years later, the company spent RMB40 million to acquire 432,007 shares of CDL, marking the first closing of the two-phase investment in CDL.
Founded in 1992 and went public on Shanghai Stock Exchange in 1993, OnlyEdu provides academic tutoring and aptitude-based education for K-12 students, vocational training and upskilling, as well as international education.
The company has generated more than RMB900 million in operating income during 2021 H1, a 14.8% year-over-year growth. K-12 academic tutoring, which was recently under strict scrutiny in China, contributed around 80.68% to its overall revenue.
The buyer said the deal will help it optimize its asset structure, speed up the turnover of capital, improve asset operational efficiency, and add more investment income to support business and product adjustment caused by recent regulations.