HONG KONG, June 26, 2018 /PRNewswire/ -- Wisdom Education International Holdings Company Limited ("Wisdom Education" or the "Company" together with its subsidiaries, the "Group", stock code: 6068.HK) is pleased to announce that the Company has entered into an HKD 500 million two-year convertible credit agreement with PA Chokmah Investment Limited ("PA Chokmah"), an indirectly wholly-owned subsidiary of China Ping An Insurance Overseas (Holdings) Limited ("China Ping An Insurance Overseas"). The proceeds will be used for expansion, acquisition and the development of new primary and secondary schools in the PRC, and repayment of certain higher-interest-rate bank borrowings.
According to the convertible credit agreement, HKD 200 million (representing 40% of the loan) will be repaid at maturity. Another HKD 200 million (representing 40% of the loan) will be mandatorily converted into shares of the company while the remaining HKD 100 million (representing 20% of the loan) may be, at the option of PA Chokmah, convertible into shares of the Company.
There is no price ceiling for the conversions.
This strategic cooperation illustrates the high confidence of China Ping An Insurance Overseas in Wisdom Education's future development. The Group will put more resources on its expansion in the Guangdong-Hong Kong-Macau Greater Bay Area. China Ping An Insurance Overseas is the key platform for overseas investment of Ping An Group (H Share stock code: 2318.HK, A Share stock code: 601318) with a proven investment track record in various industries. With its in-depth industry knowledge, China Ping An Insurance Overseas believes that the Group with its reputable school brand will benefit from the development of the Greater Bay Area.
Wisdom Education believes this cross-sector cooperation between leading corporations is in line with the development trend of the education industry. The Group is convinced that partnering with China Ping An Insurance Overseas will strengthen the Group's competitiveness in the education industry, facilitate the development of the market and consolidation of the industry, enable the partners to complement each other and allow them to expand market share, which will facilitate long term development. In additions, the Group will bring in an institutional investor to optimize its shareholder structure and financing channel.
About Wisdom Education International Holdings Company Limited
Wisdom Education International Holdings Company Limited focuses on providing high quality PRC curriculum programmes for primary and secondary school students, with "serving the society with honesty and integrity through our services and cultivating talents with a warm and loving heart" as the educational objective. As measured by student enrolment as of 1 September 2015, the group is the largest private education group in South China operating premium primary and secondary schools. As of 1 September 2017, the group operated seven premium private schools located in Guangdong, Liaoning and Shandong province, with a total enrolment of 41,180 students. Over the past three consecutive years, nearly 95% of the high school graduates were admitted to universities in China.
