Tarena to Repurchase 5.1M Shares from KKR Affiliate for $0.2/Share

TL;DR

**Tarena is buying back 5.1M shares from KKR's affiliate at $0.20 each, which could be bullish for remaining shareholders.**

AI Summary

Tarena International, Inc. announced on January 22, 2024, an agreement to repurchase 5,119,698 Class A ordinary shares from Talent Fortune Investment Limited, an affiliate of KKR & Co. Inc., at a price of $0.2 per share. This repurchase, totaling approximately $1,023,939.60, will occur in two tranches: 50% in late January 2024 and the remaining 50% in February 2024. This matters to investors because reducing the number of outstanding shares can increase the earnings per share for remaining shareholders, potentially boosting the stock price.

Why It Matters

This share repurchase reduces the total number of shares available, which can increase the value of existing shares by concentrating ownership and potentially improving per-share financial metrics.

Risk Assessment

Risk Level: low — The share repurchase is a defined transaction with a clear price and schedule, reducing uncertainty for investors.

Analyst Insight

A smart investor would monitor Tarena's upcoming earnings reports for any positive impact on EPS and consider the reduced float as a potential catalyst, especially given the low repurchase price relative to potential future value.

Key Numbers

• 5,119,698 — Class A ordinary shares (number of shares being repurchased)
• $0.2 — repurchase price per share (the price Tarena is paying for each share)
• $1,023,939.60 — total repurchase value (the total amount Tarena is spending on the repurchase)
• January 2024 — first closing date (when the first 50% of shares will be repurchased)
• February 2024 — second closing date (when the remaining 50% of shares are expected to be repurchased)

Key Players & Entities

• Tarena International, Inc. (company) — the company repurchasing shares
• Talent Fortune Investment Limited (company) — an affiliate of KKR & Co. Inc. selling shares
• KKR & Co. Inc. (company) — parent company of the selling affiliate
• Xiaobo Shao (person) — Chief Financial Officer of Tarena International, Inc.
• $0.2 (dollar_amount) — repurchase price per share

Forward-Looking Statements

• Tarena's earnings per share (EPS) will likely see a slight increase due to fewer outstanding shares. (Tarena International, Inc.) — medium confidence, target: Q1 2024 earnings report
• The stock price of Tarena International, Inc. may experience a positive reaction following the completion of the repurchase. (Tarena International, Inc.) — low confidence, target: February 2024

FAQ

Key Financial Figures

• $0.2 — hares”), at a repurchase price of $0.2 per share. Under the Agreement, the sal

Filing Documents

• tm243708d1_6k.htm (6-K) — 13KB
• 0001104659-24-005376.txt ( ) — 14KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January 2024 Commission File Number: 001- 36363 TARENA INTERNATIONAL, INC. 6/F, No. 1 Andingmenwai Street, Litchi Tower, Chaoyang District, Beijing 100011, People’s Republic of China Tel: +86 10 6213-5687 1/F, Block A, Training Building, 65 Kejiyuan Road, Baiyang Jie Dao, Economic Development District, Hangzhou 310000, People’s Republic of China (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F Tarena Announces Agreement to Repurchase Shares from Affiliate of KKR Tarena International, Inc. (“Tarena” or the “Company”) today announced that the Company has entered into a share repurchase agreement (the “Agreement”) with Talent Fortune Investment Limited, an affiliate of KKR & Co. Inc., pursuant to which the Company agreed to repurchase 5,119,698 of the Company’s class A ordinary shares beneficially owned by Talent Fortune Investment Limited (the “Repurchased Shares”), at a repurchase price of $0.2 per share. Under the Agreement, the sale will occur on two separate dates. The closing for the sale and repurchase of first 50% of the Repurchased Shares will take place in later January 2024, and the sale and repurchase of the remaining 50% of the Repurchased Shares is expected to close in February 2024, subject to certain closing conditions being satisfied. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TARENA INTERNATIONAL, INC. By: /s/ Xiaobo Shao Name: Xiaobo Shao Title: Chief Financial Officer Date: January 22, 2024

View Full Filing

View this 6-K filing on SEC EDGAR