China-based insurance broker TIAN RUIXIANG Holdings Ltd (TIRX) has announced its entry into the Hong Kong insurance sector through the strategic purchase of Peak Consulting Services Limited, a recognised insurance brokerage in the region.
This move, executed by TIRX's subsidiary, TRX HongKong Investment Limited (TIRX HongKong), involves acquiring the firm from its sole owner, Yuefu Company Limited. The acquisition is positioned as a key development in TIRX's expansion strategy into Hong Kong's insurance brokerage market.
Under the terms of the sale and purchase agreement, the completion of this acquisition is contingent upon TRX HongKong's comprehensive review and satisfaction with the due diligence findings regarding Peak Consulting Services.
The acquisition deal is valued at $1.5 million and will be settled through the issuance of 3,472,222 Class A ordinary shares of TIRX. The share price for this transaction is set at $0.432, reflecting 80% of the stock's closing price on the NASDAQ stock exchange as of Jan. 31.
Following the finalisation of the deal, the focus will shift towards integrating the operations of the two companies, with an aim to enhance the service offerings to clients in the Hong Kong insurance market.
Zhe Wang, chairman and CEO of TIRX, said this acquisition is a significant step in realising the company's strategic vision of broadening its insurance brokerage footprint beyond Mainland China.
“We are excited about the growth opportunities in the Hong Kong market and are committed to leveraging our expertise and resources in order to capitalize on such opportunities,” he said.
