Gelonghui, January 22丨Huixin Microfinance (01577.HK) issued an announcement. On January 22, 2024, Huixinbank, a wholly-owned subsidiary of the company, entered into a sales agreement with the seller. According to this, Huixinbank has agreed to sell shares (equivalent to 24% of the total shares of the target company Quanzhou Huizhixin Investment Co., Ltd.), at a cost of about RMB 18.5 million.
After completing the proposed acquisition, Huixin Bank will hold 99% of the total shares of the target company, and the target company will continue to be a non-wholly-owned subsidiary of the company.
The target company is an investment and consulting company established in Quanzhou, Fujian Province on August 10, 2017. As of the date of this announcement, its registered capital was 10.0 million US dollars. The target company is mainly engaged in investment activities and enterprise management consulting with its own funds.
The board of directors believes that the proposed acquisition will further strengthen the company's control over this asset and enable the company to develop more effective business strategies and expansion plans for the target company's business. Furthermore, after considering the benefits that Huixin Bank will obtain by increasing its shares in the target company, the board of directors believes that the acquisition of sales shares by Huixin Bank from the seller is in the company's interests, and that the seller's sale of sales shares to a third party may bring uncertainty to shareholder dynamics.