Goldlok Toys to Spend USD53 Million for Controlling Stake in Online Education Firm
Dou Shicong
DATE:  Jul 21 2017
/ SOURCE:  Yicai
Goldlok Toys to Spend USD53 Million for Controlling Stake in Online Education Firm Goldlok Toys to Spend USD53 Million for Controlling Stake in Online Education Firm

(Yicai Global) July 21 -- Goldlok Toys Holdings (Guangdong) Co. [SHE:002348] will invest CNY360 million (USD53 million) to acquire a controlling stake in online education operator, Shenzhen City and Information Industry Co., via an equity purchase and capital injection, aiming to ramp up its presence in the education information technology industry.

The Guangdong-based toy producer will purchase a 45 percent stake in the target company with a cash payment of CNY270 million (USD40 million), and then increase its shareholding to 52.25 percent through a capital injection of CNY90 million (USD13.3 million), Goldlok Toys said in a statement today. Some 75 percent of the CNY270 million payment (after deducting taxes) will be used to buy and hold Goldlok's shares on the secondary market, per the transfer agreement.

Shenzhen City and Information Industry owns core technologies for 12 cloud-based multimedia education services, 17 patented technologies and several software copyrights, according to the statement. Its proprietary SEES smart education service platform features long-distance education, interactive teaching and campus information management functionalities.

Goldlok has been transforming its businesses toward the education industry, in line with the government's call for 'internet + education' development, the firm noted. It branched out into the education business last October, symbolized by an acquisition of a 100 percent stake in Guangdong Fan Ai Zhong Network Technology Co.

The target company is a competitive player on the internet-based education market, and the deal marks an important step in its education IT development strategy, said the public company.

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Keywords:   Goldlok Toys,Internet,Online Education,Investment,SHAREHOLDING,Stake,Multimedia,Cloud