Huize Holding Limited Announces Termination of Acquisition of Shengs Life & General

Rhea-AI Summary

Huize Holding Limited (NASDAQ: HUIZ) has announced the termination of its planned acquisition of a controlling stake in Hubei Shengs Life & General Insurance Agency Co., Ltd. due to delays in closing. The termination will take effect on January 28, 2022, and the company will incur no termination fees as a result. The acquisition was initially agreed upon on September 24, 2021, through a subsidiary of Huize. The company, a digital insurance platform in China, focuses on providing long-term life and health insurance products to younger consumers.

Positive

• None.

Negative

• Termination of acquisition may hinder potential market expansion.
• Delays in closing could indicate operational challenges.

SHENZHEN, China, Jan. 14, 2022 (GLOBE NEWSWIRE) -- Huize Holding Limited, (“Huize” or the “Company”) (NASDAQ: HUIZ), a leading digital insurance product and service platform for new generation consumers in China, today announced that it has notified Hubei Shengs Life & General Insurance Agency Co., Ltd. (“Shengs Life & General”) and its shareholders of the termination of the previously announced acquisition of a controlling equity interest in Shengs Life & General (the “Acquisition”). Pursuant to the transaction documents of the Acquisition, the Company is exercising its right to terminate the Acquisition with ten working days prior notice due to delays in the closing. The termination of the Acquisition will become effective on January 28, 2022. The Company will not incur any termination fees in connection with the termination of the Acquisition.

As previously announced, on September 24, 2021, the Company, through Shenzhen Zhixuan Wealth Investment Management Co., Ltd., a wholly-owned subsidiary of the Company’s consolidated variable interest entity, entered into a definitive agreement to acquire a controlling equity interest in Shengs Life & General.

About Huize Holding Limited

Huize Holding Limited is a leading digital insurance product and service platform for new generation consumers in China. Targeting the younger generation, Huize is dedicated to serving its insurance clients for their life-long insurance needs. Leveraging its online platform, Huize offers a wide variety of insurance products with a focus on long-term life and health insurance products, and empowers its insurer partners to reach a large fragmented client base in the insurance retail market efficiently and enhance their insurance sales. Huize provides insurance clients with digitalized insurance experience and services, including suitable product recommendations, consulting service, intelligent underwriting, and assistance in claim application and settlement, which significantly improve transaction experience.

For investor and media inquiries, please contact:

Investor Relations
Harriet Hu
Investor Relations Director
+852 3180 9207
investor@huize.com

Media Relations
mediacenter@huize.com

Christensen
In China
Ms. Jasmine Zhu
Phone: +852 2117 0861
Email: jasminezhu@christensenir.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com 

FAQ

What led to the termination of Huize Holding's acquisition of Shengs Life & General?

The acquisition was terminated due to delays in the closing process, with a notice given to Shengs Life & General.

When will the termination of the acquisition become effective?

The termination will become effective on January 28, 2022.

Will Huize Holding incur any fees due to the termination of the acquisition?

No, Huize Holding will not incur any termination fees connected to the termination.

What was the initial purpose of acquiring Shengs Life & General?

The acquisition aimed to enhance Huize's market presence and offer a broader array of insurance products to consumers.

What date was the acquisition of Shengs Life & General initially announced?

The acquisition was announced on September 24, 2021.