CDEL Announces Special Committee's Appointment of Independent Financial Advisor

Rhea-AI Summary

China Distance Education Holdings Limited (NYSE: DL) announced on July 29, 2020, that its special committee has engaged Duff & Phelps, LLC as a financial advisor to review a non-binding "going private" proposal received on June 8, 2020. This proposal comes from Mr. Zhengdong Zhu, the company's chairman and CEO, and his affiliated entity. The company cautions that no decisions regarding the proposal have been made, and no assurance can be given about the approval or completion of any transaction.

Positive

• Engagement of Duff & Phelps, LLC may provide experienced guidance for evaluating the proposal.

Negative

• Uncertainties regarding the proposal may create volatility in stock price.
• Lack of assurance about the proposal moving forward could lead to investor concern.

BEIJING, July 29, 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 the special committee (the "Special Committee") of the  board of directors of the Company (the "Board") formed to review and evaluate the previously-announced non-binding "going private" proposal (the "Proposal") that the Board received on June 8, 2020 from Mr. Zhengdong Zhu, the Company's chairman of the Board and chief executive officer; Ms. Baohong Yin, the Company's deputy chairman of the Board and the spouse of Mr. Zhu; and their affiliated entity (collectively, the "Buyer Group") has retained Duff & Phelps, LLC as the Special Committee's financial advisor 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 Securities Exchange and Commission, 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 a transaction based on the Proposal 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-special-committees-appointment-of-independent-financial-advisor-301101840.html

SOURCE China Distance Education Holdings Ltd.

FAQ

What is the recent announcement from China Distance Education Holdings Limited regarding the proposal?

On July 29, 2020, the company announced the engagement of Duff & Phelps, LLC to evaluate a 'going private' proposal.

Who made the 'going private' proposal for China Distance Education Holdings Limited?

The proposal was made by Mr. Zhengdong Zhu, the chairman and CEO, and his affiliated entity.

What are the potential impacts of the 'going private' proposal on DL stock?

There are uncertainties that may create stock price volatility, as no decisions have been made regarding the proposal.

When was the 'going private' proposal received by China Distance Education Holdings?

The proposal was received on June 8, 2020.

What is Duff & Phelps' role in the recent announcement by China Distance Education Holdings?

Duff & Phelps, LLC has been retained as the financial advisor to the special committee reviewing the proposal.