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Huize Holding's Shenzhen Zhixuan Wealth Investment Mgmt. Co. Reports Purchase Of Controlling Equity Interest In Hubei Shengs Life & General Insurance Agency For RMB42.68M In Cash

Huize Holding Limited, (“Huize” or the “Company”, together with its subsidiaries, its consolidated variable interest entity and the subsidiaries of the consolidated variable interest entity the

Benzinga · 09/24/2021 06:04

Huize Holding Limited, (“Huize” or the “Company”, together with its subsidiaries, its consolidated variable interest entity and the subsidiaries of the consolidated variable interest entity the “Group”) (NASDAQ:HUIZ), a leading digital insurance product and service platform for new generation consumers in China, today announced that the Group, through Shenzhen Zhixuan Wealth Investment Management Co., Ltd. (“Zhixuan Investment”), a wholly-owned subsidiary of the Group’s consolidated variable interest entity, has entered into a definitive agreement to acquire a controlling equity interest in Hubei Shengs Life & General Insurance Agency Co., Ltd. (“Shengs Life & General”), one of the leading regional insurance agency groups dedicated to distributing life and health insurance products.

Pursuant to the definitive agreement by and among Zhixuan Investment, Shengs Life & General and current shareholders of Shengs Life & General, Shengs Life & General will undergo a series of restructuring so as to become a wholly-owned subsidiary of a group company (“Shengs Group”). Subsequently, Zhixuan Investment will acquire a total of 56.19% equity interest in Shengs Group for a share purchase price of approximately RMB42.68 million in cash, together with a capital injection of RMB15 million. The transaction is expected to complete by the end of 2021, subject to the satisfaction of customary conditions precedent. Following the completion of the transaction, Shengs Life & General will be accounted for as a consolidated subsidiary of the Company.