Oriental Selection plans to sell its education business to its parent company New Oriental for 1.5 billion to focus on the future live streaming field.

According to news from this site on December 28, Oriental Selection Holdings Co., Ltd. issued an announcement on December 27. The board of directors approved the proposed sale of the education business to parent company New Oriental for a total consideration of 1.5 billion yuan.

Oriental Selection announced: “The sale is part of the business restructuring of Guangdong New Oriental Group, which aims to more clearly divide its business lines and update well align its business units with the operating environment. Currently, the industries operated by the Group and New Oriental Group overlap with each other, and their businesses are divided based on the delivery medium of their products/services. After the Disposal, the Group and New Oriental Group operate The industries will be differentiated and different from each other. The Group will no longer operate in the field of online education, but will become a specialized self-operated product and live broadcast business operator."

According to the announcement, Oriental Selection has made it clear that once the sale is completed, it will no longer include the education business and will withdraw from the online education market. At the same time, all related-party transactions in the education business between Oriental Selection and New Oriental Group will also cease. As of September 30, 2023, the book value (net debt) of the education business was approximately 153 million yuan, and the sale is expected to bring approximately 1.653 billion yuan in income to Oriental Selection.

Oriental Selection Plan decided to use the proceeds for future development. The specific allocation is as follows: 10% will be used for marketing and sales, 10% will be used for talent attraction and retention, 20% will be invested in research and development, 40% will be used for other general development and operation of self-operated products and live broadcast business, and the final 20% Will be used for general working capital.

Dongfang Selection has made it clear that it will no longer consider the online education business, but will focus on the development of self-operated products and live broadcast e-commerce business to adapt to market changes and promote the company's long-term development. The transaction is expected to close on March 1, 2024, or within ten business days thereafter.

Inquiries on this site found that the General Office of the Ministry of Education and other four departments jointly issued the "Notice on Further Standardizing the Work Related to Compulsory Education After-School Services", which strictly prohibits arbitrary expansion of the scope and compulsory education of students. To participate, it is strictly prohibited to increase students' academic burden, to charge arbitrary fees in the name of after-school services, and to prohibit unqualified institutions and personnel from entering the school to provide after-school services.

The above is the detailed content of Oriental Selection plans to sell its education business to its parent company New Oriental for 1.5 billion to focus on the future live streaming field.. For more information, please follow other related articles on the PHP Chinese website!