TAL Announces Investment by a Global Growth Investment Firm

Rhea-AI Summary

TAL Education Group (NYSE: TAL) announced a major investment from a global growth investment firm, which will acquire approximately US$1.5 billion in newly issued Class A common shares. Post-transaction, the investor will own about 8.35% of TAL's outstanding shares. The closing is anticipated in November 2020, and the investor is restricted from selling their shares for six months post-closing. This share issuance is exempt from the registration under the Securities Act of 1933.

Positive

• Investor acquisition of US$1.5 billion enhances TAL's capital structure.
• Investor commitment to a six-month lock-up period indicates confidence in TAL's future.

Negative

• Issuance of new shares may dilute existing shareholders' equity.

BEIJING, Nov. 12, 2020 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a leading K-12 after-school tutoring services provider in China, today announced that a global growth investment firm has agreed to purchase a total of approximately US$1.5 billion of newly issued Class A common shares of the Company. Following the transaction, the investor will hold, taking into account its existing holding, approximately 8.35% of the Company's outstanding shares.

The transaction is subject to customary closing conditions and the closing is expected to take place in November 2020. The investor has agreed not to sell, transfer or dispose of any shares acquired in the transaction for six months after the closing.

The share issuance is exempt from registration under the Securities Act of 1933, as amended, (the "Securities Act") pursuant to Section 4(2) of the Securities Act regarding transactions not involving a public offering or is made in reliance on, and in compliance with, Regulation S under the Securities Act.

Safe Harbor Statement

This announcement contains forward-looking statements. These 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," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, 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. Information regarding these risks and uncertainties is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

About TAL Education Group

TAL Education Group is a leading K-12 after-school tutoring services provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for Chinese students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive tutoring services to students from pre-school to the twelfth grade through three flexible class formats: small classes, personalized premium services, and online courses. Our tutoring services cover the core academic subjects in China's school curriculum as well as competence oriented programs. The Company's learning center network currently covers 91 cities. We also operate www.jzb.com, a leading online education platform in China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".

For further information, please contact:

Echo Yan
Investor Relations
TAL Education Group
Tel: +86 10 5292 6658
Email: ir@tal.com

Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com

View original content:http://www.prnewswire.com/news-releases/tal-announces-investment-by-a-global-growth-investment-firm-301172228.html

SOURCE TAL Education Group

FAQ

What recent investment did TAL Education Group make?

TAL Education Group secured an investment of approximately US$1.5 billion from a global growth investment firm.

How much stake will the new investor hold in TAL after the investment?

The investor will hold approximately 8.35% of TAL's outstanding shares after the investment.

When is the expected closing date for TAL's investment transaction?

The closing of the transaction is expected to take place in November 2020.

What are the restrictions on the new investor's shares in TAL?

The investor has agreed not to sell or transfer any shares for six months post-closing.

Is TAL's share issuance registered under the Securities Act?

No, the share issuance is exempt from registration under the Securities Act of 1933.