SHENZHEN, China, Feb. 25 /PRNewswire-Asia/ -- Noah Education (NYSE: NED) ("Noah" or the "Company"), a leading provider of interactive educational content and education services in China, announced today that it has completed a block trade to repurchase its ADSs from Lehman Brothers Bankhaus AG ("Lehman Brothers").
Noah executed a block trade prior to the US market open on February 24, 2010 to repurchase 656,400 ADSs at US$4.00 per share, for a total consideration of US$2,625,600. In conjunction with this trade, multiple institutional buyers also purchased from Lehman Brothers an aggregate of 1,273,600 ADSs at US$4.00 per share, for an additional consideration of US$5,094,400.
Noah's decision to initiate this repurchase stemmed from its awareness that Lehman Brothers has recently been liquidating its equity stake in Noah, which has resulted in pressure on its valuation. An affiliate of Lehman Brothers, which filed for bankruptcy in 2008, was one of Noah's private equity investors prior to its IPO. Having considered Noah's current trading price, financial position and liquidity, the Board believes this transaction represents an appropriate use of available capital, and that it was in the best interests of Noah's shareholders. Additionally, this trade helped meet the increased demand for NED ADSs that the Company has seen recently from various institutional investors.
The purchase of these ADSs was funded by the Company's available working capital. As of December 31, 2009, Noah had cash and cash equivalents, short-term bank deposits and short-term investments of RMB800.3 million (US$117.3 million), representing cash per ADS of US$3.05.
Mr. Dong Xu, Chairman and Chief Executive Officer of Noah, commented, "The Board's decision to repurchase ADSs from Lehman Brothers demonstrates our ongoing commitment to act in the best interests of our shareholders and our confidence that current ADS price levels do not reflect our potential value. We are also delighted by the recent appetite institutional investors have shown for Noah, signifying that the investment community recognizes that our track record of operational execution, combined with robust growth prospects, positions us to drive value creation.
"Our solid balance sheet and strong cash position afforded us the flexibility to implement this repurchase of ADSs from Lehman Brothers and still remain well capitalized to pursue our strategy of organic and acquisitive growth."
About Noah
Noah Education Holdings Limited is a leading provider of interactive educational content and education services in China. Noah's core offering includes the development and marketing of interactive educational courseware content, electronic learning products, software, kids' English training and after-school education services. Noah combines standardized education content with innovative digital and multimedia technologies to create a dynamic learning experience and improve academic performance for kids in China aged 3-19. Noah has developed a nationwide sales network, powerful brand image, and accessible and diverse delivery platforms to bring its innovative content to the student population. Noah also provides a kids' English training service under the brand Little New Star in its direct-owned schools and approximately 700 franchise schools throughout China. Noah was founded in 2004 and is listed on the New York Stock Exchange under the ticker symbol NED.
Forward-Looking Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's final prospectus filed with the Securities and Exchange Commission on September 24, 2007, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Investor Contact:
Jerry He
CFO and Executive Vice President
Noah Education Holdings Ltd
Tel: +86-755-8204-9263
Email: jerry.he@noahedu.com
Investor Relations (US):
Kelly Gawlik
Taylor Rafferty
Tel: +1-212-889-4350
Email: noahedu@taylor-rafferty.com
Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: +852-3196-3712
Email: noahedu@taylor-rafferty.com