Fanhua announces share exchange agreements with Puyi

Fanhua (FANH) announced that certain of Fanhua’s shareholders, entered into share exchange agreements with Puyi (PUYI). The Fanhua participating shareholders consist of Yinan Hu, co-chairman of the board of directors and chief executive officer of the company, certain other executive officers of the company, certain employees, and certain other shareholders. Pursuant to the terms of the share exchange agreements, the parties have agreed to pursue a share exchange transaction where the Fanhua participating shareholders will exchange an aggregate of 568,226,628 ordinary shares of Fanhua beneficially owned by them for an aggregate of 284,113,314 newly issued ordinary shares of PUYI. The exchange ratio for the transaction is two ordinary shares of Fanhua for every Puyi ordinary share. The transaction is expected to close on December 29, subject to customary closing conditions. As a result of the transaction, the Fanhua participating shareholders will collectively own approximately 76.7% of Puyi’s equity interests, and Puyi will, in turn, own approximately 50.1% of Fanhua’s equity interests.