On December 31, 2020, Beijing Minsheng Shidai Education & Technology Co., Ltd. ("Beijing Minsheng"), a wholly-owned subsidiary of Minsheng Education (01569.HK), and Guokai Xianyun (Beijing) Asset Management Co., Ltd. ("Guokai Xianyun") entered into an equity transaction agreement so as to acquire 50% of the equity interests in Open University Online Distance Education Technology Co., Ltd. ("Open University Online") for RMB 410 million by way of trading on the Tianjin Property Right Exchange Center. On January 13, 2021, Open University Online completed the industrial and commercial amendment registration, and the closing of the Transaction.
Prior to the Acquisition, in March 2020, Minsheng Education has indirectly acquired 50% of the equity interests in TCL Educational Web Limited ("TCL Educational Web"); and through subsequent internal restructuring, enabled TCL Educational Web and Beijing Minsheng to own 25% of equity interests separately in TCL Educational Web. Upon the completion of the Transaction, Open University Online will become an indirect wholly-owned subsidiary of Minsheng Education.
Open University Online is the operator of national distance education public service system, mainly engaged in software development, production of computer software and hardware, development of distance education software, information network technology and other businesses. In addition, Open University Online owns 100% of the equity interests in Beijing Open Distance Education Center Co., Ltd. ("Open Distance Education").
Open Distance Education is responsible for the construction, management and operation of the national distance education public service system, and to provide the cooperative higher education institutions with such services as enrollment, fee payment, teaching support, educational affairs and big data support. Up to now, Open Distance Education has cooperated with more than 30 colleges and universities across China with about 1 million students. There are more than 1,800 study centers in 31 provinces and municipalities across China.
On December 13, 2020, the closing conditions precedent, stipulated in the equity transaction agreement signed by Beijing Minsheng Zhicai Education & Technology Co., Ltd. ("Minsheng Zhicai"), a wholly-owned subsidiary of Minsheng Education (01569.HK), and Doxue Network Technology (Beijing) Company Limited (“Doxue Network”) in terms of the acquisition of 60% of the equity interests of Doxue Network by Minsheng Zhicai for less than RMB 288 million, have been satisfied and the closing of the transaction has been completed.
As the operating entity of “Doxue Classroom” and “MBACHINA”, Doxue Network mainly provides online education services and education information service business for the MBA category, including management joint exams, international projects, school selection consultation, pre-examination training, test preparation materials, overseas business schools, thesis writing training, doctoral application services, etc. As of 31 July 2020, there are more than 200 business schools cooperating with Doxue Network; and Doxue Classroom and MBACHINA have accumulated approximately 1.9 million users.
Global Law Office acts as the PRC legal counsel of Minsheng Education in the acquisitions of the abovementioned online education companies, providing comprehensive, professional and efficient PRC legal services throughout the whole process of the projects. GLO team was led by our partner Mr. Jinrong Liu, with support from our associates Ms. Zhenzhen Zhang, Ms. Ruiqing Zhu, Ms. Quanxin Li, etc.