China Liberal Education Holdings Limited (NASDAQ: CLEU) disclosed that it has inked a stock purchase agreement with the shareholders of Wanwang Investment Limited (Wanwang) to purchase 100% equity interest of Wanwang. This purchase represents the greatest accomplishment of China Liberal to directly operate colleges as the owner.
China Liberal believed that this acquisition anticipates reinforcing its services and products and further enhancing the quality of its programs offered to colleges. The company also depends on its partner schools to establish a teaching research center, a training center, a vocational training center, and an information product laboratory, and to back other cooperation projects of the Company.
Furthermore, China Liberal agreed to purchase 100% of the equity interests in Wanwang in exchange for US$60 million under the terms of the agreement. The Agreement's transaction was authorized by the Company's board of directors in a special meeting on January 28, 2022, with the transaction set to close on February 10, 2022.
Additionally, China Liberal anticipates making full use of the two colleges' current lodging capacity and enrollment, as well as improving its services and operations, increasing publicity and brand awareness, and adjusting prices and charges. It believes it is well-positioned to move to the next level by enhancing teaching and research skills and driving education informatization further, which will unleash the Company's development potential and increase shareholder value.