- Tarena's pending take-private deal at $4/ADR offers +40% upside (+22% on a scenario-weighted basis) and the deal could close in Q3 2021 per recent guidance.
- The market is concerned about a potential tutoring crackdown in China, prompting a dramatic sell-off compared to the deal price.
- Risk is not zero, regulation will likely occur soon, yet Tarena's operations focus more on adults and technical education for K-12 and may be less impacted by potential Chinese regulations.
- Hence, the deal may still close in Q3 as planned, and even if it doesn't Tarena may still offer reasonable value.
For further details see:
Tarena Offers Material Short-Term Upside Due To Overstated Regulatory Fears