TIAN RUIXIANG Targets Expansion with Acquisition of Hong Kong-Based Insurance Broker
BEIJING – In a strategic move to penetrate the Hong Kong market, TIAN RUIXIANG Holdings Ltd (NASDAQ:TIRX), a renowned Beijing-based insurance brokerage firm, has formally announced its intention to acquire Peak Consulting Services Limited, a duly licensed insurance broker in Hong Kong. The transaction, delineated as a sale and purchase agreement with Yuefu Company Limited, carries a valuation of $1.5M. Payment for the acquisition will be facilitated through the issuance of 3,472,222 Class A ordinary shares of TIAN RUIXIANG.
This merger aims to enhance TIAN RUIXIANG's foothold in Hong Kong, identified by the firm as a principal avenue for growth in its insurance brokerage operations. Subject to a thorough due diligence review by TRX HongKong Investment Limited, a wholly-owned subsidiary of TIAN RUIXIANG, the acquisition is anticipated to pave the way for a smooth operational integration between the entities involved.
Mr. Zhe Wang, Chairman, and CEO of TIAN RUIXIANG Holdings Ltd, underscored the acquisition as a key milestone in realizing the company's strategic vision in Hong Kong. By leveraging its profound expertise, the company aims to capitalize on the numerous opportunities that the Hong Kong insurance market has to offer. Wang's statements reflect the company's ambitious goals of enhancing its service offerings and crafting superior value propositions for its clientele in the region.
TIAN RUIXIANG is celebrated for its comprehensive distribution of diverse insurance products, ranging from property and casualty insurance to life and health insurance, primarily within mainland China. The firm's expansion into Hong Kong is regarded as a significant step toward diversifying its market presence and reaching new client demographics.
The calculation of the acquisition's consideration is anchored on a price that is at a discount from the closing price of $0.54 per share as of January 31, 2024. It is important to note that the announcement encompasses forward-looking statements that are inherently subject to various risks and uncertainties. TIAN RUIXIANG has made it clear that it has no intention of updating these statements following subsequent events, urging investors to thoroughly assess potential risk factors that could impact future outcomes.
This development signifies TIAN RUIXIANG Holdings Ltd's resolute commitment to scaling its operations and bolstering its market position, reinforcing its standing as a pivotal player in the insurance brokerage industry.
This expansion news is purely informational, based on a press release from TIAN RUIXIANG Holdings Ltd, and does not in any way constitute an endorsement of the company or its future performance projections.
Analyst comment
Positive news. TIAN RUIXIANG’s acquisition of Peak Consulting Services in Hong Kong boosts its presence in the market and strengthens its insurance brokerage operations. The strategic move aligns with the company’s vision and growth strategy. With its expertise and comprehensive product range, TIAN RUIXIANG aims to capitalize on opportunities in the Hong Kong insurance market and expand its client base. The acquisition is anticipated to facilitate smooth operational integration and enhance the company’s market position.
