Tencent Holdings Ltd. has agreed to invest RMB320 million (US$50 million) in the online education platform of New Oriental Education and Technology Group Inc. before the unit’s planned initial public offering, says a company announcement.
An affiliate of Tencent has agreed to make the investment in Beijing New Oriental Xuncheng Network Technology Co., Ltd., which operates the New York Stock Exchange-listed New Oriental’s online education platform, Koolearn.com.
After the completion of the Tencent investment, which is expected during the first quarter, Beijing New Oriental Xuncheng Network will remain controlled by parent New Oriental.
Beijing New Oriental Xuncheng Network is currently planning an initial public offering on a major stock exchange in China, says the statement, subject to market conditions and government approvals.
After the IPO, New Oriental plans to continue to control and consolidate the results of Beijing New Oriental Xuncheng Network.