Huize Holding Limited (NASDAQ: HUIZ) has announced the acquisition of Hubei Shengs Life & General Insurance Agency Co., Ltd. Huize has inked an acquisition agreement through Shenzhen Zhixuan Wealth Investment Management Co., Ltd, which is a fully-owned unit of the Group’s combined variable interest entity.
In accordance with the conclusive agreement by and among Zhixuan Investment, Shengs Life & General, and current shareholders of Shengs Life & General, Shengs Life & General will be subject to a series of restructuring to become a fully-owned unit of a group firm (Shengs Group). Huize Holding Limited has earned a reputation as a top digital insurance product and service platform for new generation customers in China.
Share of Huize Holdings Limited surged 5% during the pre-market trading session of Friday. In the past 52-weeks of a trading session, the share of the firm has oscillated between the 52-week low and high range of $1.96 and $13.85, respectively. Huize Holding Limited (NASDAQ: HUIZ) has recorded a market capitalization of $114.30 million at the time of writing.
Zhixuan Investment will purchase a total of 56.19% equity interest in Shengs Group for a share buying price of nearly RMB42.68 million in cash, coupled with a capital injection of RMB15 million. The deal is anticipated to finalize by the end of 2021. The execution is dependent on the fulfillment of traditional conditions precedent. After the execution of the deal, Shengs Life will be registered as a combined unit of the firm.