ChinaGrowth North Acquisition Corporation (CGNAC) announced that it has entered into a Share Purchase Agreement to acquire the Chinese insurance broker UIB Group Limited. Following completion of the transaction, UIB will become a wholly owned subsidiary of ChinaGrowth North Acquisition Corporation.
“UIB’s current management team will remain in place to run the business following consummation of the acquisition. It is anticipated that, upon consummation of the acquisition, CGNAC will change its name to ‘UIB Group Limited,’ said the bulletin.
CGNAC is a specially funded acquisition vehicle. Acquiring a specific business through a share exchange is its primary purpose.
CGNAC Chairman Xuesong Song will remain on the board. He expressed the Company’s excitement about the acquisition. “UIB has built a strong business in China’s expanding insurance brokerage sector and is well positioned to continue its impressive growth trends,” he indicated. “UIB maintains a leading position in China’s education insurance industry and has proven capabilities designing products attractive to both customers and insurance companies.
“The Company operates in a market with significant barriers to entry and has a highly scalable operating model with zero underwriting risk. UIB’s strong management team with extensive insurance experience paves the way for continued business execution and the ability to pursue growth opportunities. The market dynamics in China make for a compelling growth opportunity fueled by a growing middle class, economic growth and government mandates for educational institutions adopting school liability insurance.”
Xiaoping Chen, Chairman of the Board and Chief Executive Officer of UIB Group Limited commented: “UIB will pursue a multi-product growth strategy. We intend to expand our market penetration in China by cultivating new relationships as well as rolling out new, higher-value insurance brokerage products and services utilizing our established and growing distribution channel. Overall, we are very excited to be involved with ChinaGrowth North Acquisition Corporation and believe the growth strategy we have developed for our business will take our company to a higher level of visibility, opportunity and performance.”
Source – CGNAC
Topics Mergers & Acquisitions China
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