China Distance Education Reveals New Share Issuance Plan By Zhengbao Yucai

(RTTNews) - China Distance Education Holdings Ltd. (DL) Thursday announced that its majority-owned subsidiary Beijing Zhengbao Yucai Education Technology Co., Ltd. has delivered a revised share issuance plan to China's New Third Board, an over-the-counter stock exchange.

Zhengbao Yucai expects to raise funds of around RMB83.3 million ($11.9 million), an increase from RMB80.0 million proposed under the prior plan. The proceeds are expected to be used by Zhengbao Yucai for business development.

As per the Revised Plan, Zhengbao Yucai will issue no more than 41,880,000 common shares, representing 40.5 percent of the total outstanding shares of Zhengbao Yucai, at a price of RMB1.99 ($0.28) per common share. Earlier, the proposed pricing was RMB1.91 per common share.

Zhengdong Zhu, chairman and CEO of CDEL, and Liankui Hu, an independent director of CDEL, will subscribe for 63.8 percent and 24.6 percent, respectively, of the total shares to be issued.

The Board, relying on the Special Committee's recommendation, determined that the terms of the proposed transaction were fair to the Company and its shareholders, and approved the Revised Plan and the related acting-in-concert agreement and authorized the Company to cause the board of directors of Zhengbao Yucai to approve the Revised Plan.