PUYI - Puyi Announces Share Exchange Transactions with Certain Shareholders of Fanhua | Benzinga
GUANGZHOU, China, Dec. 27, 2023 (GLOBE NEWSWIRE) -- Puyi Inc. (NASDAQ:PUYI) ("Puyi"), a leading third-party wealth management services provider in China, today announced that it has entered into certain share exchange agreements with certain shareholders of Fanhua Inc. (("Fanhua, NASDAQ:FANH), including Mr. Yinan Hu, co-chairman and CEO of FANHUA, certain executive officers of Fanhua, certain employees of Fanhua and certain other shareholders (collectively "Fanhua's Participating Shareholders"). The transaction is expected to close on December 29, 2023, subject to customary closing conditions.
Pursuant to the share exchange agreements, Puyi will issue an aggregate of 284,113,314 ordinary shares of Puyi in exchange for an aggregate of 568,226,628 ordinary shares of Fanhua beneficially owned by Fanhua's Participating Shareholders. The exchange ratio for the transactions is 2 ordinary shares of Fanhua per Puyi ordinary share. Upon completion of the transactions, Fanhua's Participating Shareholders will collectively own 76.7% of Puyi's issued and outstanding equity interests while Puyi will own approximately 50.1% of Fanhua's issued and outstanding equity interests and become its largest shareholder.
Commenting on the transactions, Mr. Yong Ren, Chief Executive Officer of Puyi, said, "These transactions hold milestone significance for Puyi and will create substantial value for our shareholders. It not only underscores our steadfast commitment to providing high-quality, diversified financial products and services for our clients and offering a one-stop support platform for financial advisors but also signifies our unwavering determination to pursue excellence."
"In the past decades, we have witnessed remarkable achievements by Fanhua as a leading force in the insurance intermediary sector. We believe that Fanhua's ...