Puyi Inc. (NasdaqGM:PUYI) entered into letter of intent to acquire 33.35783% stake in Fanhua Inc. (NasdaqGS:FANH) from other shareholders for approximately $500 million on December 25, 2023. Puyi Inc. (NasdaqGM:PUYI) entered into share exchange agreement to acquire 33.35783% stake in Fanhua Inc. (NasdaqGS:FANH) from Yinan Hu for approximately $760 million on December 27, 2023. Pursuant to the share exchange agreements, Puyi will issue an aggregate of 284,113,314 ordinary shares of Puyi in exchange for an aggregate of 568,226,628 ordinary shares of Fanhua beneficially owned by Fanhua?s Participating Shareholders. The exchange ratio for the transactions is 2 ordinary shares of Fanhua per Puyi ordinary share. Upon completion of the transactions, Fanhua?s Participating Shareholders will collectively own 76.7% of Puyi?s issued and outstanding equity interests while Puyi will own approximately 50.1% of Fanhua?s issued and outstanding equity interests and become its largest shareholder. The Transaction is expected to close on December 29, 2023, subject to customary closing conditions. Meng Ding. of Sidley Austin acted as a legal advisor to Puyi Inc.

Puyi Inc. (NasdaqGM:PUYI) completed the acquisition of 33.35783% stake in Fanhua Inc. (NasdaqGS:FANH) from Yinan Hu on December 29, 2023.