godzillapremiumpinball| Foreign shareholders plan to acquire a 10% stake in Taiping Pension for 1.075 billion yuan, and can increase their holdings to 24.99% in three years

On the evening of May 20thGodzillapremiumpinball, China Taiping (HK00966, share price 8GodzillapremiumpinballFujie International Co., Ltd. of Belgium (hereinafter referred to as "Fujie") plans to increase its capital to Taiping pension with 1.075 billion yuan, and after the capital increase is completed, Fujie Group will hold about 10 per cent of Taiping pension, according to a notice issued by HK $900, with a market capitalization of 40.927 billion yuan.

For the purpose of capital increase, Taiping pension said that the introduction of Fujie as an investor will help to supplement its capital, provide capital guarantee for endowment insurance business and support business development. In addition, the introduction of Fujie helps to optimize the ownership structure of Taiping pension, establish and improve the market-oriented corporate governance mechanism, and fully draw lessons from the international excellent governance experience and operation mechanism in the management decision-making process of "three meetings and one layer". To promote the management level and operational efficiency of Taiping pension, and provide strong support for the long-term and steady development of Taiping pension.

Fujie acquired a 10% stake for 1.075 billion yuan and is expected to increase its stake to 24.99% in 3 years.

According to the announcement, on May 20, 2024, China Taiping, Longbi Industrial Zone Management (Shenzhen) Co., Ltd. (referred to as "Longbi"), Fujie and Taiping entered into a capital increase agreement. Under the capital increase agreement, Fujie agreed to conditionally subscribe, while Taiping pension agreed to conditionally issue subscription shares equivalent to about 10 per cent of Taiping's enlarged issued share capital, with consideration of 1.075 billion yuan.

According to the capital increase agreement, Taiping pension should issue 330 million Taiping pension shares to Fujie, the total subscription price of Fujie is 1.075 billion yuan, and Taiping pension will increase its registered capital from 3 billion yuan to 3.333 billion yuan by issuing subscription shares to Fujie.

It is noteworthy that, according to the shareholders' agreement, Fujie has the right to subscribe or nominate one or more of its legal subsidiaries to subscribe for a certain number of shares issued by Taiping veterans at any time after the signing of the shareholders' agreement and at any time until the third anniversary of the delivery date. As a result, the shareholding proportion of Fujie and its subsidiaries will be increased to 24.99%.

After the completion of this capital increase, about 90% of the equity of Taiping pension is held by China Taiping and about 10% by Fujie, and Taiping veteran has become a non-wholly-owned subsidiary of China Taiping.

It is reported that Fujie is a limited company registered under Dutch law and existing under Belgian law. It is a subsidiary of Fujie Group. Fujie Group, with a long history of 200 years, is one of the major insurance companies in Europe, with premiums exceeding 17 billion euros in 2023 and setting up institutions in 13 countries in Europe and Asia, covering life insurance, property insurance, reinsurance and asset management.

Wang Sidong, chairman of Taiping Pension, said that Belgium's Fujie Group has a history of 200 years and enjoys a high reputation in the European market. This cooperation between the two sides will give full play to the experience and advantages of Fujie Group in pension, promote all-round innovation and reform of Taiping pension, work together to enhance core competitiveness, and contribute to the development of China's multi-level and multi-pillar old-age insurance system.

"China's pension market is one of the largest in the world and has great potential for growth." Bart De Smet, chairman of Fujie Group, said that Taiping Pension, as one of the important old-age insurance companies in China, is an ideal platform for Fujie Group to seize the opportunities in China's pension financial market. Fujie Group is in a leading position in the pension market in many European countries. In the future, Fujie Group will make use of common expertise and resources with China Taiping to promote Taiping pension to provide more excellent products and services to its customers and continue to expand its market share.

A number of professional retirement insurance institutions have increased their capital during the year.

A reporter from the Daily Economic News noted that Taiping pension is not the only one that attaches importance to the pension market and actively promotes capital increase, and a number of professional retirement insurance companies are working hard to improve solvency and actively lay out their business.

On February 20, Hengan Standard Endowment Insurance Co., Ltd. issued a notice that the State Administration of Financial Supervision and Administration issued an approval for Hengan Standard Endowment Insurance Co., Ltd. to change its registered capital, agreeing to increase the registered capital of Hengan Standard Endowment Insurance by 200 million yuan, from 200 million yuan to 400 million yuan.

Taikang Endowment Insurance Co., Ltd. (hereinafter referred to as "Taikang Endowment") issued a notice on April 10 that in order to meet the company's business development and solvency needs, the company's shareholder Taikang Insurance Group Co., Ltd. (hereinafter referred to as "Taikang Group") plans to increase capital to Taikang pension by 2 billion yuan again. This decision was considered and adopted at the 2023 annual shareholders' meeting held on April 2, 2024.

"the capital increase mainly comes from the needs of regulation and the company's long-term business development." Some people in the industry told reporters. This view has also been recognized by professional retirement insurance companies. As Wang Sidong said, China is actively dealing with the aging population. China's old-age finance is in an important period of strategic opportunity and rapid development, and old-age insurance and services are pregnant with huge market potential.

However, in the view of people in the industry, whether the professional retirement insurance company can get a place in the market mainly depends on the business resources and investment management ability of the company in the three pillars of China's pension business.