ChineEdu (CEDU) has a market cap of $116 mm and an EV of $64 mm. New Vernon is an 8.2% Holder.
The Reporting Persons purchased ADSs from time-to-time between August 8, 2008 and March 1, 2011. At the time of such purchases, the Reporting Persons believed the ADSs were undervalued and represented an attractive investment opportunity. The purchases of the ADSs were made in the Reporting Persons’ ordinary course of business and were not made for the purpose of acquiring control of the Issuer.
From time-to-time, representatives of the Reporting Persons have had conversations with the Issuer’s management, including the Chief Executive Officer. Discussions to date have related primarily to the business and operations, financial performance, capital structure and valuation of the Issuer.
The Reporting Persons believe the ADSs are significantly undervalued and have now determined to evaluate measures aimed at enhancing shareholder value for the benefit of all of the Issuer’s shareholders. In connection with this process, the Reporting Persons may take such actions with respect to their investment in the Issuer as they deem appropriate, including, without limitation, communications with the Issuer’s management and board of directors, conversations with other shareholders or industry participants, and engaging investment bankers or other advisors. Discussions may include, without limitation, proposals to the Issuer, other shareholders or industry participants concerning changes to the capitalization, ownership structure, board composition, or operations of the Issuer (including, for example, taking the company private, the sale of non-core assets, or payment of one or more extraordinary dividends).