UK private equity firm CVC invests $200M in Chinese education company EIC
British private equity firm CVC Capital Partners Ltd. has agreed to invest over $200 million into Chinese education company EIC Group Ltd. CVC Capital will buy EIC shares from its rival private equity firm Actis Capital LLP, sources told Reuters.
The report, citing sources, said that the deal will give CVC Capital a substantial stake and a greater level of management control over EIC than Actis Capital had. The sources however did not disclose the exact stake CVC Capital would own.
EIC specializes in providing coaching services to students in China seeking an overseas education. The education company becomes the latest in a series of China buyouts where business owners have sold their shares to give more control to incoming investors, Reuters said.
The trend is fuelled by lengthy waits to get to a public listing in China, where the country's securities regulator has lifted a freeze on initial public offerings this month after a 15-month hiatus, the report said.