Jupai Holdings, a third-party wealth management service provider in China, has entered into a share purchase agreement with Julius Baer Investment and Chinese online media company SINA Hong Kong Limited (SINA).
As part of the agreement with Julius Baer, Jupai will issue to Julius Baer 9,591,000 ordinary shares (equivalent to 1,598,500 ADSs), which represents approximately 4.99 per cent of the Company's total outstanding share capital immediately upon the completion of the transaction, at USD1.83 per share (equivalent to USD11 per ADS). Under the agreement with SINA, the Company will issue to SINA, at the same price, 2,880,000 ordinary shares (equivalent to 480,000 ADSs) representing approximately 1.5 per cent of the Company's total outstanding share capital immediately after the completion of the transaction. SINA's beneficial ownership in Jupai will be 11.35 per cent immediately upon completion of the transaction. The aggregate transaction value of this private placement is approximately USD22.9 million. The private placement to Julius Baer and SINA is expected to close in January 2016.
Jianda Ni, the Co-Chairman of the Board of Directors and Chief Executive Officer of Jupai, says: "Julius Baer is a global leading private wealth management bank with operations spanning many countries and regions. This investment is a strong endorsement of Jupai's brand and management strength. We expect the cooperation between our two companies will further diversify Jupai's product categories and add more overseas financial products to our existing product lines, allowing us to better meet the demand for overseas asset allocation among Jupai's clients. In addition, Julius Baer's valuable experience in the wealth management industry will help to further improve the expertise of Jupai's financial advisors."
Boris Collardi, CEO of Julius Baer, says: "Given the importance of Asia as a key region for growth, Julius Baer has over the last 10 years built up its Asian business to become its second home market. Participating in Jupai's private placement will provide Julius Baer with valuable insight into one of the most successful players in Chinese onshore wealth management and further strengthen our expertise in China, whilst providing Jupai access to our global investment know-how.
