- Ambow Education ( NYSE: AMBO ) shares jumps 7.5% premarket after the firm notifies that its board has received a preliminary non-binding proposal letter from Clover Wealth to acquire all of the company's business assets in China.
- The sale of these assets is in-line with applicable PRC's regulatory requirements introduced in 2021.
- The proposal letter outlines the SPV's intent to acquire all of the equity interests in WFOEs and VIEs of the Company, and all of the intellectual properties used in the conduct of business of WFOEs and VIEs and owned by a subsidiary of the company.
- The purchase price for the target is approximately $10M.
- Concurrently, the company also announced that Mr. KJ Tan, Ambow's CFO, has resigned, effective September 19, 2022.
- Dr. Jin Huang, President and CEO of Ambow, will serve as Acting CFO until a replacement is appointed.
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Ambow stock surges on receiving proposal letter from Clover Wealth to acquire China assets; CFO KJ Tan resigns