Mainland broking group to acquire HK insurance broker for US$1.5m
Nasdaq-listed Tian Ruixiang Holdings (TRH), a China-based insurance broker conducting business through its variable interest entity, has announced that TRX HongKong Investment, a wholly-owned subsidiary of the company, has entered into a sale and purchase agreement to acquire Peak Consulting Services.
The total consideration for the acquisition is $1.5m, to be paid in 3,472,222 of TRH’s Class A ordinary shares, which was calculated based on $0.432 per share, equivalent to 80% of the closing price of $0.54 per share on 31 January 2024, on NASDAQ.
Peak Consulting Services is a licensed insurance brokerage in Hong Kong, wholly owned by Yuefu Company.
This strategic acquisition represents a milestone in TRH’s business to expand into the Hong Kong insurance brokerage market.
Under the agreement, the proposed acquisition is conditional upon, among other things, the completion of a satisfactory diligence review of Peak Consulting Services by TRX Hong Kong.
Upon the completion of the acquisition, the management of TRX Hong Kong will work closely with the management of Peak Consulting Services to achieve a seamless integration of operations to deliver enhanced value propositions to insurance clients in the Hong Kong market.
Mr Zhe Wang, chairman and CEO of TRH, said, “This acquisition aligns with our long-term strategic vision of establishing a presence beyond mainland China’s insurance brokerage market. We are excited about the growth opportunities in the Hong Kong market and are committed to leveraging our expertise and resources to capitalise on such opportunities.”
Tian Ruixiang Holdings, headquartered in Beijing is an insurance broker operating in China through its China-based variable interest entity. It distributes a wide range of insurance products, which are categorised into two major branches: (1) property and casualty insurance, such as automobile insurance, commercial property insurance, and liability insurance; and (2) other insurance, such as life insurance and health insurance.
