- China Online Education Group (NYSE:COE) has entered into a definitive share purchase agreement with Dasheng Holding (HK) Limited, controlled by China Online chairman & CEO Jiajia Jack Huang.
- Under the agreement, Jiajia Jack Huang, through Dasheng, will acquire the company's online English tutoring businesses in the China mainland, including all associated liabilities and assets, for $1.
- After the closing of the transaction, Dasheng will grant a right to the company to purchase certain newly issued shares of up to 99% of the outstanding shares of the entities holding the China Mainland Business with an exercise price of $1.
- The deal is expected to be completed on or around June 30, 2022.
- Upon the closing, China Online expects to shift from a negative net assets position to a positive net assets position.
- Price Action: COE shares are trading higher by 8.89% at $1.47 in premarket on the last check Friday.
