RISE Education Receives Preliminary Buy-out Proposal From CEO

(RTTNews) - RISE Education Cayman Ltd (REDU) said that its board has received a preliminary non-binding proposal letter, dated October 18, 2021, from Lihong Wang, chairwoman of the Board and chief executive officer of the Company, to acquire substantially all assets of the company.

In Wednesday pre-market trade, REDU was trading at $1.42 up $0.16 or 12.70%.

The company noted that its board, with Wang recused, began to carefully evaluate the Proposal Letter and the Proposed Transaction.

There can be no assurance that the Proposal Letter will not be withdrawn, the lenders under the CTBC Facility will consent to the Proposed Transaction, the company said in a statement.