CAST to buy up rest of Foreign Trade and Business College

Aug. 12, 2009 (China Knowledge) - ChinaCast Education Corp<CAST>, a leading for-profit education company operating in China, has signed a definitive agreement to acquire the remaining 20% stake in the holding company that owns the Foreign Trade and Business College of Chongqing Normal University for US$17.6 million, sources reported.

Pursuant to the terms of the agreement, ChinaCast will pay 50% of the consideration within ten days of signing. The remaining of 50% will be paid within five days after the registration of the transfer of ownership with the authorities.

The company will also pay an additional US$2.3 million for a one-time profit distribution, making the total acquisition price US$19.9 million.

On Apr. 21, 2008, ChinaCast acquired an 80% stake in Hai Lai Education Technology Ltd, the holding company which owns 100% of the college, for US$65.8 million in cash.

The company on Monday published its first-half financial results, which show that its total revenue hit US$ 22.5 million, up 16% year on year. The company's operating income surged 76% to US$9.2 million, while its net income rose 36% to US$6.7 million from US$4.9 million in the first half of 2008.

The company targets operating revenue between US$49 million and US$51 million for this year.