New York-listed Chinese education service provider Noah Education Holdings Ltd. says it has received a preliminary non-binding proposal from an investor consortium including the company’s chairman Xu Dong, president Tang Benguo and co-founder Wang Xiaotong to take the company private, according to a company announcement.
MSPEA Education Holding Limited, an affiliate of Morgan Stanley Private Equity Asia (MSPEA), is supporting the management buyout of the Shenzhen-based Noah Education.
The investor consortium is proposing to pay US$2.80 in cash per American Depositary Share (ADS), or US$2.80 in cash per ordinary share, valuing the company at around US$108 million.
This represents a 24.4% premium to the stock’s closing price on December 23.
The consortium already controls a majority stake of 59.3% of Noah. Baring Private Equity Asia also holds a 8.9% stake of the company.
Noah says the company’s board of directors has formed a special committee to consider the proposal.
Founded in 2004, Noah owns and operates 48 high-end kindergartens located in Guangdong province, Hunan province and the Yangtze River Delta in China.