Xueda Education Enters Into Definitive Merger Agreement With Xiamen Insight

(RTTNews) - Xueda Education Group (XUE) said it has entered into a definitive agreement and plan of merger with Xiamen Insight Investment Co., Ltd. for Insight to acquire Xueda for $2.75 in cash per ordinary share or $5.50 in cash per American Depositary Share of the company.

The price represents a premium of 95 percent over the company's closing price of $2.82 per ADS on April 17, the last trading day prior to April 20, the date that the company announced it had received a "going private" proposal from Insight.

The Board unanimously approved the merger agreement and the transaction and resolved to recommend that the company's shareholders vote to authorize and approve these.

An Independent Committee, which is composed solely of independent and disinterested directors, negotiated the terms of the merger agreement with the assistance of its financial and legal advisors.

The transaction is currently expected to close in the fourth quarter of 2015.