Convoy Financial Services Acquires the Largest Independent Financial Advisory Company in Singapore Further Expansion of its Business Footprint
Aim at Becoming One of the Largest and Leading Independent Financial Advisory Companies in Asia
(Hong Kong, 28 July 2011) – Convoy Financial Services Holdings Limited (the "Company", and together with this subsidiaries, the "Group"; stock code: 1019) announced the Company will pay up to a maximum of S$25,000,000 (equivalent to approx. HK$162,240,000) to acquire 100% of the total number of issued shares in IPP Financial Services Holdings Limited (the "Target Company"), which is principally engaged in the provision of services relating to life insurance, investment planning and investment advice in Singapore, so as to further expand the business footprint of the Group, and to become one of the largest quality independent financial advisory companies in Asia.
According to the agreement, the total consideration is up to S$25,000,000 (equivalent to approx. HK$162,240,000). Payment will be made in two tranches. The first tranche will be a maximum of S$10,000,000 (equivalent to approx. HK$64,896,000), whilst the second tranche will be of a maximum of S$15,000,000 (equivalent to approx. HK$97,344,000).
The Vendors will provide Profit Guarantee for the Purchaser that the Target Company will generate at least S$4,000,000 (equivalent to approximately HK$25,958,400) consolidated after-tax net profit in any 4 consecutive quarters within the 24-month period from 1 January 2012 to 31 December 2013. In the event the Profit Guarantee is not met and there is a shortfall in such guaranteed consolidated after-tax net profit, a proportionate amount of the Second Tranche will be refunded to the Purchaser in accordance with the agreed formula.
Quincy Wong, Chairman of the Company said, "Following the Group's announcement earlier on being one of the first companies to enter the insurance intermediary market in Mainland China through CEPA, we further expand our business footprint to the Singapore market, which is consistent with the 'regional expansion' strategy that we implement. In the future, the Group will continue to pursue mergers and acquisitions opportunities beyond Hong Kong especially in Asian markets to create synergies through acquiring and developing insurance agencies, insurance brokers, investment advisory companies and independent financial advisory companies in the region (including China) and in result becoming one of the largest and leading independent financial advisory companies in Asia."
IPP Financial Services Holdings Limited is one of the largest financial advisory companies in Singapore with over 400 employees. It is principally engaged in the provision of services relating to life insurance, investment planning and investment advice.
About Convoy Financial Services Holdings Limited (Stock code: 1019)
Convoy Financial Services Holdings Limited ("Convoy Financial") operates through its wholly owned subsidiary Convoy Financial Services Limited, which is the largest independent financial adviser firm in Hong Kong. With over 1,200 qualified and competent consultants, Convoy Financial Services Limited is able to select from a wide spectrum of investment-linked assurance schemes ("ILAS"), insurance products and MPF schemes to tailor the specific risks and returns expectations of customers.
