CNinsure to increase stakes in two Chinese insurance agencies to 51%
Independent Chinese insurance intermediary CNinsure (NASDAQ: CISG)
signed a definitive agreement to acquire an additional 41% interests in
both the Shandong Mintai Insurance Agency Co Ltd and the Ningbo Baolian
Insurance Agency Co Ltd, taking CNinsure’s stake to 51% in each company.
"The
addition of these two agencies will greatly strengthen our capacity for
insurance product distribution in Shandong and Zhejiang provinces, help
us further penetrate into these two provinces and enhance our
competitiveness", CNinsure chairman and chief executive Mr Yinan Hu
stated.
Under the terms of the deal, it is agreed that all of
Mintai's and Baolian's net income from 2010 to 2014 will be distributed
to CNinsure. Furthermore, CNinsure's shareholdings in the agencies will
be adjusted upwards if certain operational and financial targets are not
achieved, similarly the total consideration for each deal may also be
subject to downward adjustment.
The transaction is expected to
close in the second quarter of 2010, subject to certain closing
conditions.
Related news
- Regency Mines shares up on more positive Mambare results
- Escher Group wins largest contract to date; shares surge
- Chariot Oil & Gas completes 3D seismic survey in Namibia
- Peninsula Energy chairman talks to Proactive Investors in Stocktube Video
- Empire Energy Group hits oil production milestone in Appalachia
- Aminex and Solo Oil to carry out further analysis on Ntorya-1 well
- Angel Biotechnology shares surge as it reveals new contracts worth total of £4.5mln
