China Education Group Holdings Limited (SEHK:839) entered into an agreement to acquire Long Link Investment Limited for CNY 2.4 billion on July 26, 2021. Out of CNY 2.4 billion, CNY 1.7 billion would be paid in cash and 58.996 million shares of China Education Group Holdings. As first payment, CNY 1.7 billion cash shall be paid in cash within 10 working days upon the satisfaction and 38.3 million shares, 7.7 million shares as second payment and 13.03 million shares as third payment. The consideration Shares will be subject to a three-month lock-up period from the respective issuing dates. Pursuant to the agreement, the vendor guaranteed that the net cash of the target group as at June 30, 2021 shall not be less than CNY 270 million. In the event that the net cash of the target group as at June 30, 2021 shall fall short of the guaranteed amount, 51% of the difference between the guaranteed amount and the actual net cash shall set off against the cash consideration of CNY 1.7 billion at completion. Upon completion, Long Link Investment Limited will become an indirectly wholly owned subsidiary of the China Education Group Holdings. The unaudited total assets and net asset value of Long Link Investment Limited as at December 31, 2020 is approximately CNY 2.9 billion and CNY 1.97 billion respectively. Completion of the acquisition agreement shall take place on the cash payment day.