FANH - Fanhua to acquire Zhongji an insurance agency in China
- Fanhua ( NASDAQ: FANH ) to acquire 51% of the equity interests of Zhongji for a stock consideration of up to 683,036 ADS.
- Zhongji is the largest insurance agency in Jilin Province, China, which registered over RMB100M gross written premiums in 2022 and is estimated to generate gross written premium of ~RMB208M and net income of RMB15M in 2025, representing a compound annual growth rate of ~16% and 44%, respectively, from 2023 to 2025.
- The stock consideration, adjustable based on the achievement of certain performance targets in the next three years by Zhongji, is subject to a lock-up period of three years and will be released from lock-up in two batches after 2025.
- The transaction is expected to be completed in Q1 2023.
For further details see:
Fanhua to acquire Zhongji, an insurance agency in China