FANH - Fanhua agrees to acquire Taiping Online Insurance Agency

• Fanhua ( NASDAQ: FANH ) agrees to acquire 51% of the equity interests of Wuhan Taiping Online Insurance Agency Co., Ltd., is a Chinese insurance conglomerate.
• The Taiping's group major businesses are reinsurance, life insurance, property and casualty insurance, asset management, reinsurance brokerage, pension management, real estate manager, etc.
• The deal is expected to be completed in the first quarter of 2023.
• Per the terms, the company will acquire 51% of the equity interests of Taiping with stock considerations of up to 455,357 ADSs.
• The stock consideration, adjustable based on the achievement of certain performance targets in the next three years by Taiping, is subject to a lock-up period of three years and will be released from lock-up in two batches after 2025.
• Taiping is estimated to generate gross written premiums of no less than RMB160 million and net income of RMB10 million in 2025, representing compound annual growth rates of 40% and 26% from 2023 to 2025, respectively.

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