The first acquisition since listing.
Tonight, China Kepei (01890.HK) announced that it plans to acquire Harbin Petroleum Institute for 1.45 billion yuan.
This payment is made in two installments: the first installment of RMB 450 million must be paid to the seller on or after February 10, 2020; the second installment of RMB 700 million must be fulfilled under certain conditions under the equity transfer agreement Payment to the seller within 10 working days; the final amount of RMB 300 million must be on September 15, 2020, or (ii) within 10 working days after the conditions for payment of the second instalment are fulfilled (whichever is later) ) To the seller.
The equity transfer agreement can be terminated under the following circumstances:
(i) In the event of a serious breach by any other contracting party, the contracting party shall terminate;
(ii) with the unanimous written consent of the parties;
(iii) If within 365 days of applying to change the funder of the target school to Huarui, The Ministry of Education of China has not approved the application. In the event of a serious breach by a contracting party, the contracting party must compensate the other party in accordance with the equity transfer agreement for the losses suffered as a result of the breach.
Harbin Petroleum Institute was established in 2003 by Xie Yongli (holding 98%) and Huarui (holding 2%). It is a private general undergraduate college. At present, there are about 9366 students studying undergraduate courses, and the total area of property land use rights is about 667,700 square meters.
The net profit after tax for 2018 was 36.445 million yuan, the net profit after tax for 2019 was 68.421 million yuan, and its net assets were 764 million yuan.
There are only two universities under the Chinese Academy of Sciences-Guangdong University of Technology and Zhaoqing University.
For the purpose of acquisition, the announcement marks a milestone for the Group’s first attempt to expand the school network and increase market penetration since its listing last year. The directors believe that with the acquisition, the Group will be able to enter Harbin. Harbin is another strategically important position of the Group. In addition, after the acquisition, the total number of students in the group will further increase, and its profitability and penetration rate will be further enhanced.