Tencent Plans RMB320 Mln Investment In Xun Cheng; Xun Cheng To Conduct IPO

(RTTNews) - Tencent To Invest RMB320 Mln In Xun Cheng; Xun Cheng Intends To Conduct IPO [EDU]

New Oriental Education and Technology Group Inc. (EDU), a provider of private educational services in China, Monday said an affiliate of Tencent Holdings has agreed to invest RMB 320 million, or $50 million, in Beijing New Oriental Xuncheng Network Technology Co., Ltd.

The investment in Xuncheng, which operates online education platform, Koolearn.com, is expected to be completed in the first quarter of 2016. Upon completion of the investment, Xun Cheng will remain as a majority controlled affiliate of New Oriental.

New Oriental also said Xun Cheng plans to conduct an initial public offering and listing of its common shares on a major stock exchange in China, subject to capital markets conditions and regulatory approvals. While the number of common shares to be offered and sold in the IPO has yet to be determined, New Oriental plans to continue to control and consolidate Xun Cheng after Xun Cheng's IPO.