ATA Shares Double in New York after Company Announces Proposed Acquisition
ATA Inc. (Nasdaq: ATAI), which provides education services to students in China and abroad, today announced it signed an agreement with Beijing Huanqiuyimeng Education Consultation Corp. and certain shareholders to acquire Huanqiuyimeng Education.
Shares of ATA were trading at $2.15 per share in late trading in New York today, up $1.13 per share.
"Over the past few years, we have identified a significant opportunity to grow in certain strategic markets for domestic and international educational markets," said Kevin Ma, ATA's chairman and CEO. "The art education market is of particular interest due to rapidly growing interest in China and need for international education experience to enhance the learning capabilities of students."
In recent years, Beijing Huanqiuyimeng Education has also been expanding its international education business. The company has focused on its nationwide offline sales network and online platform to expand its overseas art education market in China.
With growing demand for international education among Chinese urban families, more Chinese students are studying abroad. China, with the largest number of students sent abroad, had 544,500 Chinese students pursuing study abroad opportunities in 2016, more than triple the 179,800 students who sought overseas education in 2008, according to the Ministry of Education.
Under the terms of the preliminary agreements, Huanqiuyimeng Education and its major shareholders, including its founder, will negotiate with ATA until June 30 for an acquisition of 100 percent of the share capital of Huanqiuyimeng Education.