(Yicai Global) Aug. 15 -- Sansheng Intellectual Education Technology plans to invest CNY96.6 million (USD13.7 million) to acquire an at least 40 percent stake in EduChina International Group as it looks to expand its service offerings overseas.

The Beijing-based firm penned a cash deal with EduChina and its founding shareholders Li Song and Wang Wei on Aug. 13, the buyer said in statement yesterday. Li, Wang and their affiliates hold some 93.5 percent of equity of EduChina and have agreed to price the stock based on the target's expected net profit for 2020.

The two parties also agreed that the sellers will use at least 50 percent of the after-tax proceeds to invest in Sansheng shares in the secondary market within six months of the deal, according to the statement. Sansheng's [SHE:300282] share price was largely unaffected -- down 0.35 percent at CNY11.30 (USD1.61) but still beating the bourse's benchmark index.

EduChina has 16 international education centers across China and works with public high schools in the United States to provide an American high school curriculum to local students looking to learn overseas. It also helps them with applications for universities in English-speaking countries.

Editor: James Boynton