OneConnect Announces Memorandum of Understanding to Purchase Majority Stake in a Credit Technology Company
August 25 2021 - 6:00AM
Business Wire
OneConnect Financial Technology Co., Ltd. (“OneConnect” or the
“Company”) (NYSE: OCFT), a leading technology-as-a-service platform
for financial institutions in China, today announced that it has
entered into a Memorandum of Understanding ("MOU") to acquire a
majority equity stake in SHENZHEN VZOOM CREDIT TECHNOLOGY Co., Ltd.
(“VZOOM Credit Technology”), a credit technology company that
provides integrated credit solutions to help financial institutions
in China automate, transform and scale up credit products and
services for medium and smalls enterprises.
Pursuant to the MOU, OneConnect intends to acquire no less than
50% equity stake in VZOOM Credit Technology in exchange for a
combination of cash and shares. The exact valuation, the percentage
of equity stake to be sold, and the form of consideration for the
acquisition, including the number of OneConnect consideration
shares to be issued and any adjustment mechanism etc., will be
provided for in a definitive agreement. The closing of the
transaction is subject to the execution of the definitive
agreement, OneConnect’s satisfactory due diligence and internal
approval as well as any other conditions to be identified in the
definitive agreement. The MOU provides an exclusivity of three
months from its date.
The potential acquisition, if and when consummated, would create
strategical value for OneConnect, including allowing OneConnect to
continue to enhance and optimize its SME banking related product
performances, offerings and competitiveness, complement its market
position, and expand its market share.
About OneConnect
OneConnect is a leading technology-as-a-service platform for
financial institutions in China. The Company’s platform provides
cloud-native technology solutions that integrate extensive
financial services industry expertise with market-leading
technology. The Company’s solutions provide technology applications
and technology-enabled business services to financial institutions.
Together they enable the Company’s customers’ digital
transformations, which help them increase revenue, manage risks,
improve efficiency, enhance service quality and reduce costs.
The Company's technology-as-a-service platform strategically
covers multiple verticals in the financial services industry,
including banking, insurance and asset management, across the full
scope of their businesses – from sales and marketing and risk
management to customer services, as well as technology
infrastructure such as data management, program development and
cloud services.
For more information, please visit ir.ocft.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements constitute “forward-looking” statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as “will”, “expects”, “anticipates”,
“future”, “intends”, “plans”, “believes”, “estimates”, “confident”
and similar statements. Such statements are based upon management’s
current expectations and current market and operating conditions
and relate to events that involve known or unknown risks,
uncertainties and other factors, all of which are difficult to
predict and many of which are beyond the Company’s control.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company’s limited operating history in the technology-as-a-service
for financial institutions industry; its ability to achieve or
sustain profitability; the tightening of laws, regulations or
standards in the financial services industry; the Company’s ability
to comply with the evolving regulatory requirements in the PRC and
other jurisdictions where it operates; its ability to comply with
existing or future laws and regulations related to data protection
or data security; its ability to maintain and enlarge the customer
base or strengthen customer engagement; its ability to maintain its
relationship with Ping An Group, which is its strategic partner,
most important customer and largest supplier; its ability to
compete effectively to serve China’s financial institutions; the
effectiveness of its technologies, its ability to maintain and
improve technology infrastructure and security measures; its
ability to protect its intellectual property and proprietary
rights; risks of defaults by borrowers under the loans for which
the Company provided credit enhancement under its legacy credit
management business; its ability to maintain or expand relationship
with its business partners and the failure of its partners to
perform in accordance with expectations; its ability to protect or
promote its brand and reputation; its ability to timely implement
and deploy its solutions; its ability to obtain additional capital
when desired; litigation and negative publicity surrounding China
-based companies listed in the U.S.; disruptions in the financial
markets and business and economic conditions; the Company’s ability
to pursue and achieve optimal results from acquisition or expansion
opportunities; the duration of the COVID-19 outbreak, including the
emergence of COVID variants, and its potential impact on the
Company’s business and financial performance; and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in the Company’s
filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press
release, and the Company undertakes no obligation to update any
forward-looking statement, except as required under applicable
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210825005352/en/
Investor Relations: Anita YQ Du Anita.yq.du@ocft.com Media
Relations: Amy Ding dingjingmin787@ocft.com
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