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Financials

CVC Capital exits investment in China's EIC, ending HK IPO plans

HONG KONG, May 5 (Reuters) - Private equity firm CVC Capital Partners said on Thursday it sold its stake in Education International Corp (EIC) to a group of Chinese investors, ending plans for an IPO of the company which provides educational advice to Chinese students.

A source with direct knowledge of the deal said CVC earned about 4.5 billion yuan ($692 million) from the sale. That would be more than triple the reported $200 million it originally invested in 2013.

The source declined to be identified as financial terms of the deal have not been officially disclosed.

The buyers were led by Chinese private equity firm NLD Investment LLP and also included EIC’s founder Joe Li as well as other EIC management, CVC said in a statement.

Thomson Reuters publication IFR had reported that the planned Hong Kong listing would have been worth up to $500 million.

$1 = 6.5029 Chinese yuan Reporting by Elzio Barreto; Editing by Edwina Gibbs

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