SZ-listed Lvjing acquires K12 education provider Jiayi for $172m

Students at the Shichahai sports school attend a class in Beijing, China, May 18, 2016. REUTERS/Damir Sagolj/Files

Guangzhou-based real estate developer Lvjing Holding Co., Ltd, is acquiring Jiangsu Jiayi Education Technology Co., Ltd (Jiayi), a K12 education software and training provider, for 1.2 billion yuan ($172 million), per the company’s latest filing with Shenzhen Stock Exchange (SSE). 

With this deal, Lvjing is targeting to expand its business to on-demand education services. Jaiyi, set up in 2011 and located in East China’s Jiangsu province, engages in K12 education software-as-a-service (SaaS), training and online learning. As of 2019, Jiayi claims to have provided services for over 1,800 domestic education training organisations. Besides, it acquired UK’s kindergarten-focused education institute Bambino Group. 

The company first filed for the equity buyout on March 2. The deal comprises two tranches. The buyer will first pick up a 73.63 per cent stake in Jiayi though common shares, while the remaining interest will be settled in cash. 

Founded in 1988, Lvjing specialises in real estate development and property management. The HK-listed property developer Skyfame Realty (Holdings) Limited is the controlling shareholder holding 22.65 per cent stake while the individual investor ‘Yu Feng’ is Skyfame’s actual controller. 

Recently, Lvjing acquired Ming An Medical, an investment management firm focused on the healthcare industry, as it seeks to expand its scope of operations.

Lvjing owns five other subsidiaries: Guangzhou Hengyuan Property Management, Guangzhou Lvjing Investment, Skyfame Realty (Guangxi), Foshan Ruifeng Investment, and Guangzhou Lvjing Mining Resource Investment. 

Following the deal, Yu will remain the actual controller in Jiayi with indirect holding through Skyfame (11.21%) and direct ownership of 14.84%. Jiayi’s current majority shareholders will continue to hold 17.54 per cent after the transaction.

Lvjing went public in Shenzhen in 1992. Its market value is worth 1.7 billion yuan ($243 million) and the price per share was at 9.2 yuan ($1.3) as of press time. 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.