CHEN LIN EDU (01593.HK): framework agreement for 51% stake purchase
- The subsidiary would acquire a 51% stake and gain control of the target, while the vendor retains 49%.
- Consideration is to be paid in cash and new shares, backed by a performance undertaking on net operating profit excluding non-recurring items.
NewTimeSpace News: On 3 November 2026, Chen Lin Education Group Holdings Limited (stock code: 01593) said its wholly-owned subsidiary signed an acquisition framework agreement with the vendor and the target. The vendor intends to transfer a 51% stake in the target, giving the subsidiary control while it keeps 49%. Consideration will be paid in cash and new shares, with a profit undertaking on the target's net operating profit excluding non-recurring items.
An exclusivity period runs to 31 December 2026. The Company focuses on private higher vocational education, while the target makes gallium nitride power device packaging and modules. The Company cautioned that the agreement is a non-binding framework of preliminary intent; definitive terms require formal documents and completion depends on due diligence, approvals and other conditions. There is material uncertainty over whether the deal proceeds, and shareholders are advised to exercise caution.
