Yirendai Announces Business Realignment with CreditEase
March 25 2019 - 6:24AM
Yirendai Ltd. (NYSE: YRD) (“Yirendai” or the “Company”), a leading
fintech company in China, announced today that it has entered
into definitive agreements relating to a business realignment with
CreditEase Holdings (Cayman) Limited, or CreditEase, the
controlling shareholder of the Company, to better serve its
investors and borrowers. Pursuant to the definitive agreements,
Yirendai will assume certain business operations, including online
wealth management targeting the mass affluent, unsecured and
secured consumer lending, financial leasing, SME lending, and other
related services or businesses (the “Target Businesses”) from
CreditEase and its affiliates, for a total consideration of
106,917,947 newly issued ordinary shares of Yirendai and RMB889
million cash, as may be adjusted in accordance with the pre-agreed
mechanism, at the transaction closing. Ning Tang, the executive
chairman of Yirendai, who is also the founder, chairman and CEO of
CreditEase, will assume the Chief Executive Officer role of
Yirendai upon the closing of the transactions. CreditEase has also
agreed not to compete with the Company and to provide business
consulting and other support and license certain intellectual
properties to the Company.
The transactions contemplated under the definitive agreements
are subject to certain closing conditions. It is expected that the
Target Businesses will be consolidated into Yirendai’s consolidated
financial statements prior to the closing of the transactions once
controls are transferred to Yirendai.
The Company’s Board of Directors, acting upon the unanimous
recommendation of its Audit Committee consisting of independent and
disinterested directors, approved the definitive agreements and the
transactions contemplated thereunder. The Audit Committee reviewed
and considered the terms of the definitive agreements and the
transactions with the assistance of its financial and legal
advisors.
It is estimated that the unaudited total net revenues of the
Target Businesses under U.S. GAAP were RMB6.6 billion (US$962.3
million) in 2018. The online wealth management business had RMB8.6
billion of total assets under management (“AUM”) as of December 31,
2018 and an active investor base of approximately 230 thousand in
2018. As of December 31, 2018, the lending businesses had
facilitated more than RMB200 billion of loans to approximately 2.2
million borrowers since inception. In 2018, the lending businesses
referred RMB15.9 billion of loans to Yirendai and facilitated
RMB23.2 billion of loans on its own platform.
Safe Harbor Statement
This press release 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,” “target,”
“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 Yirendai’s control.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results to differ materially from
those contained in any such statements. Potential risks and
uncertainties include, but are not limited to, uncertainties as to
Yirendai’s ability to attract and retain borrowers and investors on
its marketplace, its ability to introduce new loan products and
platform enhancements, its ability to compete effectively, PRC
regulations and policies relating to the peer-to-peer lending
service industry in China, general economic conditions in China,
and Yirendai’s ability to meet the standards necessary to maintain
listing of its ADSs on the NYSE or other stock exchange, including
its ability to cure any non-compliance with the NYSE’s continued
listing criteria. Further information regarding these and other
risks, uncertainties or factors is included in Yirendai’s filings
with the U.S. Securities and Exchange Commission. All information
provided in this press release is as of the date of this press
release, and Yirendai does not undertake any obligation to update
any forward-looking statement as a result of new information,
future events or otherwise, except as required under applicable
law.
About Yirendai
Yirendai Ltd. (NYSE: YRD) is a leading fintech company in China
connecting investors and individual borrowers. The Company provides
an effective solution to address largely underserved investor and
individual borrower demand in China through an online platform that
automates key aspects of its operations to efficiently match
borrowers with investors and execute loan transactions. Yirendai
deploys a proprietary risk management system, which enables the
Company to effectively assess the creditworthiness of borrowers,
appropriately price the risks associated with borrowers, and offer
quality loan investment opportunities to investors. Yirendai’s
online marketplace provides borrowers with quick and convenient
access to consumer credit at competitive prices and investors with
easy and quick access to an alternative asset class with attractive
returns. For more information, please visit ir.yirendai.com.
For investor and media inquiries, please
contact: Yirendai Hui (Matthew)
Li/Lydia Yu Investor Relations Email: ir@yirendai.com
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