MARKET MOVES
Pearson to Acquire Global Education & Technology
Pending shareholder approval, London-based educational publishing company, Pearson plc., will acquire Global Education & Technology (Nasdaq: GEDU). Pearson will pay $2.7515 per ordinary share or $11.006 per ADS, acquiring all of theoutstanding shares of the company for a total value of approximately U.S. $294 million. According to the company, the offer represents a 105 percent premium over the closing price as quoted by Bloomberg L.P. on November 18, 2011 and a 214 percent premium over the 30-day average price as quoted by Bloomberg L.P. on November 18, 2011, the last trading day prior to this announcement. An extraordinary general meeting of Global Education shareholders to consider and vote upon the proposal to approve and adopt the merger agreement between Global Education and Pearson will be held on Monday, December 19, 2011, at the company headquarters in Beijing.
As of the date of the merger announcement on November 21, 2011, Yongqi Zhang, the chief executive officer and a director of the company, and Xiaodong Zhang, the chairman of the company’s board of directors, along with certain shareholder parties related to or affiliated with them, which collectively hold approximately 42.9 percent of the company’s outstanding shares, have entered into a voting agreement with Pearson under which those shareholders have agreed to vote their shares in favor of the merger agreement.
Upon the announcement about the acquisition, GEDU’s stock bumped from approximately $4.00 to over $10.00 where it remains. It hit its 52-week-low of $2.96 within the month prior to the announcement.
China Information Technology Makes Deloitte Fast 500 Asia List
Shenzhen-based China Information Technology Inc. (Nasdaq: CNIT) was ranked among the 500 technology companies for 2011 Deloitte Technology Fast 500 Asia Pacific list. It is the fourth consecutive year the company made the list and the 10th year Deloitte has produced the program in the Asia Pacific region. To see all the companies on the list, visit: https://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/TMT/DeloitteTF500AP2011WinnersReportFinal.pdf
L&L Partners to Expand Sales Geographically
L&L Energy Inc. (Nasdaq: LLEN) announced that its subsidiary had entered into a long term joint sales agreement with China Chengtong Metal Corp. to jointly market and sell one million tons of coal (both coking and thermal coal) in China during 2012, starting in Feb. in calendar 2012. The sales agreement will generate approximately $150 million in revenues if fully executed, using a $150 per ton coal price. The partnership allows L&L to start selling outside of Yunnan and Guizhou provinces.
PEOPLE
Keyuan Appoints New General Manager
Ningbo-China based Keyuan Petrochemicals Inc., which was delisted from Nasdaq on Oct. 6, 2011 and now trades on the OTC QB, under the same ticker (KEYP), announced the appointment of Dr. Jingtao Ma as the new General Manager of the company, replacing Mr. Chunfeng Tao. Prior to joining Keyuan in 2007, Ma held various management and technical positions at Sinopec Zhenhai Refining & Chemical Co. from 1992 to 2007. He has a Master of Science and study for Doctorate in Physical Chemistry from Lanzhou Chemistry & Physics Research Institute of Chinese Academy of Sciences.
IN BRIEF…
- Beijing-based Xinyuan Real Estate Co. Ltd. (NYSE: XIN) ratified the appointment of Ernst & Young Hua Ming as its independent public accountant for the fiscal year ending Dec. 31, 2011.
- Guangzhou-based Sino Agro Food, Inc. (OTCQB: SIAF.PK) issued a press release stating it was seeking to add independent directors to its board.
___________________________________
PRIVATE COMPANY TO WATCH
Yihaodian
Shanghai-based online supermarket, Yihaodian (www.yihaodian.com), came to the attention of CBK via the Deloitte Technology Fast 500 Asia Pacific awards announcement. It topped the list with a three-year growth rate of 19,218 percent. The company was founded in 2008 by Gang Yu, who had worked for Dell and Amazon.com. In May 2011, Walmart invested in the company, for an undisclosed sum, acquiring a minority stake. Talk of a IPO followed shortly in the financial press, with hints that the company might choose to trade on a U.S. market. Last year Giga Solar Materials Corp. landed the number one spot on the Fast 500 list, with a growth rate of 24,694 percent.
Further reading: Interview of Gang Yu by: “China Knowledge@Wharton” http://www.knowledgeatwharton.com.cn/index.cfm?fa=viewfeature&articleid=2393&languageid=1
