CNinsure Announces Management's Purchase of Shares From CDH Inservice Limited
January 05 2015 - 9:29AM
CNinsure Inc. ("CNinsure" or the "Company") (Nasdaq:CISG), a
leading independent insurance intermediary company and an online
insurance service provider in China, today announced that Kingsford
Resources Limited ("Kingsford"), a company owned by certain members
of management of CNinsure ("Management"), has entered into a share
purchase and sale agreement (the "Agreement") with CDH Inservice
Limited ("CDH Inservice"), an affiliate of CDH Investments ("CDH"),
one of the largest private equity fund in China, in a privately
negotiated transaction. Pursuant to the Agreement, Management has
agreed to purchase from CDH Inservice 7,731,149 American Depositary
Shares ("ADSs", each representing 20 ordinary shares of the
Company) or its equivalent in ordinary shares of the Company, at a
price of US$7 per ADS or US$0.35 per ordinary share, totaling
US$54.1 million. The 7,731,149 ADSs represent the entire interests
in the Company held by CDH Inservice as of the date of the
Agreement.
Upon completion of the transaction, Management's stake in the
Company will increase from approximately 3.1% to 16.6%, which will
make it the second largest shareholder of the Company, only after
Mr. Yinan Hu, Chairman of the board of directors of the Company,
who beneficially owns approximately 16.8% of the shares of the
Company. Completion of the transaction is subject to satisfaction
of the closing conditions contained in the Agreement.
Mr. Chunlin Wang, chief executive officer of CNinsure commented:
"CDH has been our major shareholder since December 2005. I would
like to, on behalf of the management, extend our deep gratitude to
CDH for their support and trust in the Company in the past decade,
which has contributed significantly to the growth of CNinsure from
a regional insurance agency to become a leading insurance
intermediary in China."
"Our decision to significantly increase our stake in the Company
demonstrates our strong confidence in the Company's growth
strategies and prospects. It is also a reflection of our continued
commitment to enhancing shareholder value."
About CNinsure Inc.
CNinsure is a leading independent intermediary company and an
online insurance service provider operating in China. CNinsure's
distribution network reaches many of China's most economically
developed regions and affluent cities. The Company distributes a
wide variety of individual and commercial lines of property and
casualty and life insurance products underwritten by domestic and
foreign insurance companies operating in China, and provides
insurance claims adjusting as well as other insurance-related
services.
Forward-looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward- looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about CNinsure and the industry.
Potential risks and uncertainties include, but are not limited to,
those relating to CNinsure's limited operating history, especially
its limited experience in selling life insurance products, its
ability to attract and retain productive agents, especially
entrepreneurial agents, its ability to maintain existing and
develop new business relationships with insurance companies, its
ability to execute its growth strategy, its ability to adapt to the
evolving regulatory environment in the Chinese insurance industry,
its ability to compete effectively against its competitors, and
macroeconomic conditions in China and their potential impact on the
sales of insurance products. All information provided in this press
release is as of the date hereof, and CNinsure undertakes no
obligation to update any forward-looking statements. Although
CNinsure believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that its expectations will turn out to be correct, and investors
are cautioned that actual results may differ materially from the
anticipated results. Further information regarding risks and
uncertainties faced by CNinsure is included in CNinsure's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form 20-F.
CONTACT: For more information, please contact:
Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2731
Email: qiusr@cninsure.net
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