China Online Education Spins Off China Mainland Business

China Online Education Group COE has entered into a definitive share purchase agreement with Dasheng Holding (HK) Limited, controlled by China Online chairman & CEO Jiajia Jack Huang.
Under the agreement, Jiajia Jack Huang, through Dasheng, will acquire the company's online English tutoring businesses in the China mainland, including all associated liabilities and assets, for $1.
After the closing of the transaction, Dasheng will grant a right to the company to purchase certain newly issued shares of up to 99% of the outstanding shares of the entities holding the China Mainland Business with an exercise price of $1.
The deal is expected to be completed on or around June 30, 2022.
Upon the closing, China Online expects to shift from a negative net assets position to a positive net assets position.
Price Action: COE shares are trading higher by 8.89% at $1.47 in premarket on the last check Friday.