[ET Net News Agency, 25 June 2018] Wisdom Education (06068) said it entered into a
credit agreement China Ping An Insurance Overseas (Holdings) Limited in relation to the
provision of the loan of the principal amount of up to HK$500 million by Ping An Insurance
Overseas to Wisdom Education for a term of 24 months.
The loan will bear an interest rate at a fixed rate of 6.8% per annum.
Subject to the satisfaction of the conversion conditions, HK$200 million, representing
40% of the loan, will be mandatorily converted into shares of Wisdom Education on the
maturity date and up to HK$100 million, representing 20% of the loan, may be, at the
option of Ping An Insurance Overseas, convertible into shares of Wisdom Educationy during
the discretionary conversion period.
The Wisdom Education Group intends to establish a long-term cooperation with China Ping
An Insurance Overseas through the credit agreement and explore more cooperation
opportunities with China Ping An Insurance Overseas in the future. The Group believes that
the credit agreement may bring to the Group not only additional financial resources but
also more business opportunities for its development. China Ping An Insurance Overseas is
a directly wholly owned subsidiary of Ping An Insurance (Group) Company of China (02318).
The Wisdom Education Group intends to utilize the proceeds partly for the expansion of
the capacity of its schools and the expansion of its school network including the
potential acquisition of schools and the development of greenfield schools, and partly for
its general working capital and the repayment of certain of its bank borrowings. (HL)