New Oriental Announces Tencent's $50M Investment in Xun Cheng

New Oriental Education and Technology Group Inc. today announced that an affiliate of Tencent Holdings Limited

has agreed to invest RMB320 million (US$50 million) in Beijing New Oriental Xuncheng Network Technology Co., Ltd. ("Xun Cheng"), which operates the Company's online education platform, Koolearn.com. This investment is expected to be completed in the first quarter of 2016. After the completion of the Tencent investment, Xun Cheng will remain as a majority controlled affiliate of New Oriental. New Oriental also announced that Xun Cheng intends to conduct an initial public offering ("IPO") and listing of its common shares on a major stock exchange in China. Xun Cheng's IPO will be subject to capital markets conditions, and its application with the relevant PRC authorities in compliance with applicable laws and regulations and obtaining the requisite regulatory approval. 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