Jiayin Group Inc. (NasdaqGM:JFIN) and Chen Liang entered into a share purchase agreement to acquire 75% stake in Massnet Microcredit Company (Chongqing) Limited from China Smartpay Group Holdings Limited (SEHK:8325) for approximately HKD 230 million on March 13, 2020. According to the share purchase agreement, Jiayin Group shall acquire 35% for HKD 105 million and Chen Liang shall acquire 40% of Massnet Microcredit Company for HKD 120 million. The aggregate consideration shall be payable to China Smartpay Group by way of irrevocable telegraphic transfer or wire in immediately available funds into its bank account(s), or such other method of payment upon completion. Jiayin Group plans to settle the consideration by offsetting receivables from China Smartpay. On May 8, 2020, China Smartpay Group Holdings Limited entered into the supplemental agreement to the share purchase agreement with buyers. As of June 12, 2020, the transaction is approved by shareholders of China Smartpay Group. On June 30, 2020, China Smartpay Group Holdings Limited entered into side letter to supplemental agreement with buyers to extend long stop date from June 30, 2020 to August 31, 2020. As of August 31, 2020, the parties to the transaction agreed to further extend the long stop date from August 31, 2020 to September 30, 2020.

The deal is subject to approval of shareholders of China Smartpay Group and other conditions. The independent Board committee, comprising all the independent non-executive Directors of China Smartpay Group will be formed to give recommendations to the shareholders of China Smartpay Group in respect of the deal. China Smartpay Group intends to apply the net proceeds as to approximately HKD 190.1 million to repay part of its current debts and as to approximately HKD 33.6 million as general working capital of itself and its subsidiaries. Jiayin Group expects the deal will provide more business opportunities for its future business development.