East Buy rises on sale of education business to focus on livestreaming

New Oriental Education & Technology

22/11/2023 03:59

** Shares of China's online education courses provider East
Buy Holding Ltd  1797.HK  rise 4.1% to HK$30.50, on track for
the biggest one-day pct rise since Nov. 6, if gains hold
    ** Stock is second biggest pct gainer in Hang Seng Tech
Index  .HSTECH 
    ** Beijing-based co says it plans to sell its education
business to parent New Oriental  EDU.N  for 1.5 bln yuan ($208
mln) cash  urn:newsml:reuters.com:*:nFWN3CM233
    ** Says it will no longer operate in the online education
space after the disposal but will become a pure-play private
label products and livestreaming business operator
    ** Daiwa says the disposal comes as no surprise as the
company management had expressed the intention to reallocate the
resources within New Oriental and East Buy to better focus on
new livestreaming ecommerce business 
    ** New Oriental's Hong Kong shares  9901.HK  rise 3% 
    ** Both Hang Seng Tech Index  .HSTECH  and Hang Seng Index
 .HSI  slip 0.1%
    ** East Buy down 42.2% YTD 


($1 = 7.2111 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))