Tarena Signs Equity Transfer Agreement to Dispose of Professional Education Business
Portfolio Pulse from Benzinga Newsdesk
Tarena International, Inc. (NASDAQ:TEDU) has entered into an agreement to sell its professional education business to a consortium led by Tarena Weishang Technology. The consortium includes an affiliate of the company's founder. The transaction is advised by Kroll, LLC and is expected to close by the end of March 2024.
December 26, 2023 | 10:45 am
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Tarena International is divesting its professional education business, which could streamline operations and focus on core segments. The involvement of the founder's affiliate may raise governance questions.
The sale of the professional education business could be seen as a positive move to concentrate on more profitable or core areas, potentially improving financials in the long term. However, short term impact is uncertain due to the involvement of the founder's affiliate, which could raise concerns about corporate governance and the fairness of the transaction. The deal's closure is also not immediate, with an expected completion by March 2024, which adds to the uncertainty.
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