All-round Education Terminates Acquisition

Quantong education’s purchase of Chin Jiuling company, a well-known financial writer Wu Xiaobo, has stalled.
On the evening of September 27, Quantom Education Group (Guangdong) Co., Ltd. (Quantom Education, 300359) issued a notice on the termination of the planning of major asset restructuring. On the same day, the company held a board meeting and decided to terminate the planning of this major asset restructuring.
Quantom Education said that since the planning of this major asset reorganization, the company and relevant parties have repeatedly discussed and communicated to actively promote the relevant work of this major asset reorganization. Affected by the macroeconomic environment, the operation of listed companies and underlying assets, the change of restructuring policies and the fluctuation of secondary market prices, the two sides failed to reach a final consensus on the elements of transaction pricing, performance commitment and compensation arrangements involved in the restructuring plan.
Quantom Education said that in order to safeguard the interests of all shareholders and the company, after careful study and friendly negotiation with the counterparty, the company decided to terminate the planning of this major asset reorganization and signed the relevant termination agreement. The termination of major asset reorganization planning will not adversely affect the company’s development strategy and business planning. In the future, the company will continue to carry out all kinds of management work in an orderly manner around the established strategic objectives, actively seek more development opportunities through the combination of endogenous and extrapolative development at the right time and conditions, continuously improve the company’s operating performance, and earnestly safeguard the interests of the majority of shareholders.
On March 18 this year, Quantom Education announced that it planned to purchase 96% of Hangzhou Bajiuling Cultural Creative Co., Ltd. by issuing shares, and to raise supporting funds.
The legal representative of Bajiuling Culture is Wu Xiaobo with a registered capital of 75 million yuan. Wu Xiaobo and his wife Shao Bingbing hold 12.81% of Bajiuling directly, and they are the actual controllers of Bajiuling. Bajiuling Culture Company operates Wechat public numbers such as Wu Xiaobo Channel. Wu Xiaobo is a well-known writer of Finance and economics. He writes The Great Loss, The Thirty Years of Rising, The One Hundred Years of Rising, The Two Thousand Years of Rising, and so on.
On March 31, a detailed transaction plan for the acquisition was launched. According to the announcement at that time, 96% of Bajiuling’s equity trading was tentatively set at 1.5 billion yuan, and the trading method was Quantom Education to issue shares.
Because of Wu Xiaobo’s high popularity and high dependence on Wu Xiaobo’s IP, the transaction has aroused widespread concern. Shenzhen Stock Exchange has issued inquiries to inquire about the details of the transaction plan.
On April 8, Quantom Education issued a response to the Shenzhen Stock Exchange inquiry letter and disclosed Wu Xiaobo’s proposed performance commitment. According to the instructions issued by Wu Xiaobo and Shao Bingbing, the actual controllers of Bajiuling, the net profit of Bajiuling in 2019, 2020 and 2021 (excluding the impact of equity incentives and investment interest on trust in 2019) is not less than 360 million yuan.
Since then, Quantom Education has issued several announcements to disclose the progress of the asset restructuring, but the progress has been slow. On September 23, Quantom Education announced that the two sides had not reached a final consensus on the core terms.