XJ International (HKG:1765) agreed to dispose of its entire equity interest in Xi'an Beinuosi Education Management, according to a Monday Hong Kong bourse filing.

Under the agreement, Xi'an Dianzhen Industrial will acquire 100% of Xi'an Beinuosi Education Management.

Xi'an Beinuosi also agreed to repay 370 million yuan in borrowings owed to the group.

The total consideration is 380 million yuan, comprising the 10 million yuan equity transfer price and the borrowings, to be settled in cash.

After receiving the consideration, XJ International will transfer full ownership of Xi'an Beinuosi Education Management to Xi'an Dianzhen Industrial.

Xi'an Dianzhen Industrial will also pledge its entire equity interest in Xi'an Beinuosi to XJ International until the borrowings are fully repaid.

XJ International expects to record an unaudited gain of about 122 million yuan from the disposal. The company said proceeds will support operating needs and improvement works at its existing schools.