CDEL Announces Formation of Independent Special Committee to Review Preliminary Non-Binding Proposal to Acquire the Company

Rhea-AI Summary

On June 22, 2020, China Distance Education Holdings Limited (NYSE: DL) announced the formation of a Special Committee to evaluate a non-binding acquisition proposal from a Buyer Group led by its co-founder and CEO Zhengdong Zhu. The proposal involves acquiring all outstanding shares for US$2.27 per ordinary share, or US$9.08 per American Depositary Share (ADS). The Board has not yet made a decision regarding the proposal, and there is no guarantee of a definitive offer or transaction completion.

Positive

• Formation of a Special Committee to review acquisition proposal
• Potential acquisition price of US$2.27 per share may reflect company value

Negative

• No guarantee that the Buyer Group will make a definitive offer or that a transaction will be completed
• Uncertainty surrounding future business developments and shareholder interests

BEIJING, June 22, 2020 /PRNewswire/ -- China Distance Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a leading provider of online education and value-added services for professionals and corporate clients in China, today announced that its board of directors (the "Board") has formed a special committee (the "Special Committee") consisting of Ms. Carol Yu and Ms. Annabelle Yu Long, each an independent director, to review and evaluate a previously-announced non-binding proposal that the Board received on June 8, 2020 (the "Proposal") from Mr. Zhengdong Zhu, co-founder, chairman of the Board and chief executive officer of the Company ("Mr. Zhu"), Ms. Baohong Yin, co-founder of the Company, deputy chairman of the Board and the spouse of Mr. Zhu, and their affiliated entity (collectively, the "Buyer Group"), to acquire all of the outstanding ordinary shares of the Company, including ordinary shares represented by American depositary shares (the "ADSs", each representing four ordinary shares), for US$2.27 in cash per ordinary share, or US$9.08 in cash per ADS (the "Proposed Transaction"). The Special Committee has retained Goulston & Storrs PC as its United States legal counsel in connection with its review and evaluation of the Proposal.

The Company cautions its shareholders and others considering trading in its securities that neither the Board nor the Special Committee has made any decision with respect to the Company's response to the Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

About China Distance Education Holdings Limited

China Distance Education Holdings Limited is a leading provider of online education and value-added services for professionals and corporate clients in China. The courses offered by the Company through its websites are designed to help professionals seeking to obtain and maintain professional licenses and to enhance their job skills through our professional development courses in China in the areas of accounting, healthcare, engineering & construction, legal and other industries. The Company also offers online test preparation courses for self-taught learners pursuing higher education diplomas or degrees, and practical accounting training courses for college students and working professionals. In addition, the Company provides business services to corporate clients, including but not limited to tax advisory and accounting outsourcing services. For further information, please visit http://ir.cdeledu.com.

Safe Harbor Statements

This announcement may contain forward-looking statements. Any such statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "may," "should," "potential," "continue," "expect," "predict," "anticipate," "future," "intend," "plan," "believe," "is/are likely to," "estimate" and similar statements. The Company may also make written or oral forward-looking statements in its periodic and annual reports to the SEC, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. There can be no assurance that the Buyer Group will make any definitive offer to the Company, that any definitive agreement relating to the Proposal will be entered into between the Company and the Buyer Group or that the Proposed Transaction or any other similar transaction will be approved or consummated.

Contacts:

In China:

China Distance Education Holdings Limited
Jiao Jiao
Tel: +86-10-8231-9999 ext. 1826
Email: IR@cdeledu.com

The Piacente Group, Inc.
Xi Zhang
Tel: +86-10-6508-0677
E-mail: dl@tpg-ir.com

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1 212-481-2050
Email: dl@tpg-ir.com

View original content:http://www.prnewswire.com/news-releases/cdel-announces-formation-of-independent-special-committee-to-review-preliminary-non-binding-proposal-to-acquire-the-company-301080814.html

SOURCE China Distance Education Holdings Ltd.

FAQ

What is the acquisition proposal for China Distance Education Holdings Limited?

The proposal involves acquiring all outstanding shares for US$2.27 per share or US$9.08 per ADS.

Who is reviewing the acquisition proposal for DL?

A Special Committee consisting of independent directors has been formed to evaluate the proposal.

Is there a guarantee that the acquisition of DL will be completed?

No, there is no assurance that a definitive offer will be made or that the transaction will be completed.

When was the acquisition proposal received by China Distance Education?

The proposal was received on June 8, 2020.

What is the role of the Buyer Group in the acquisition proposal?

The Buyer Group, led by CEO Zhengdong Zhu, proposes to acquire all outstanding shares of the company.