Dec 01, 2015 11:35 JST

Source: Fu Shou Yuan International Group Limited

Fu Shou Yuan Seeks Strategic Cooperation Opportunity with Sunshine Life Insurance in Optimizing Shareholding Structure and Enhancing Capital Flow

HONG KONG, Dec 01, 2015 - (ACN Newswire) - Fu Shou Yuan International Group Limited ("Fu Shou Yuan" or the "Company" and, together with its subsidiaries, the "Group", stock code: 1448.HK), the largest provider of death care services in the PRC, is pleased to announce that FSG Holding Corporation ("FSG Holding"), a substantial shareholder of the Group, has entered into an agreement with Sunshine Life Insurance Co., Ltd. (the "Buyer" or "Sunshine Life") involving 151,482,000 shares on November 27, 2015 (the "Premium Trading").

Pursuant to the Announcement, the Premium Trading will be carried out by FSG Holding by way of placement at a price of HK$5.12 per share, which is higher than the market price. The Sale Shares represent approximately 7.3% of the issued share capital of the Group as at the time of the disposal. Upon completion of the disposal, the shareholding of FSG Holding will be reduced from 25.3% to approximately 18% of the total issued share capital. The disposal is expected to be completed on or around late December 2015. Sunshine Life entered into the Premium Trading on the basis of its market recognition and it is positive and confident about the Group's future development. The Group believes that this trading activity of equity transfer at a premium with Sunshine Life will not only fulfill strong market demand for the shares of the Company, but will also increase the Group's capitol flow, further optimize the shareholding structure, and enhance management effectiveness, operational efficiency and overall competitiveness. Moreover, introducing insurance company into the Group for the first time would also bring more long-term and stable strategic cooperation opportunities for the Group in the future.

Since its establishment, Fu Shou Yuan has committed to promote the modernization of death care services and achieve diversified development. Sunshine Life is one of the top seven nationwide insurance companies, as well as the Top 500 Enterprises of China and Top 100 Enterprises of service industry in the PRC. Sunshine Life's main businesses include life insurance, health insurance, accident insurance and other personal insurance related businesses. This optimization of shareholding structure promotes a closer relationship between the Group and Sunshine Life. As a long-term strategic partner rather than merely a financial investor, Sunshine Life can provide low cost and stable financial support on the path of sustainable operational development. Moreover, it is the first time that a death care company pursues corporation opportunity with insurance business and also a milestone in co-developing pre-sale market and lifetime contracts. The Group firmly believes that as Sunshine Life becomes a shareholder, it could provide more capital to the Group to better consummate the construction of existing cemeteries and other death care services infrastructures, and promote market integration.

Mr. Bai Xiaojiang, Chairman and Executive Director of Fu Shou Yuan said, "With the steady development of the Group, the market demand for the shares of Fu Shou Yuan remains very high. To enhance capital flow and increase development opportunities in diversified fields, the substantial shareholder proactively made the suggestion on optimization and upgrade of shareholding structure. This transaction received overwhelming response from many large-cap international investment institutions, and the final pricing is determined at a premium, which is rare even in an international context. This reflects a strong interest and recognition of Fu Shou Yuan's investment value by various international investment institutions. Eventually, the substantial shareholder proactively chose Sunshine Life which shares similar business development strategy with us after prudent consideration. In the future, we believe our Group can effectively integrate resources from both industries, further enhance the brand influence from Sunshine Life to generate a synergistic effect, create a more powerful marketing capability so as to provide strong guarantee for the Group's great-leap-forward development and further support the Group to achieve a new breakthrough in business expansion."

Source: Fu Shou Yuan International Group Limited
Sectors: Daily Finance, Daily News

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