Chinese wealth manager Jupai Holdings has signed a share purchase agreement with Julius Baer Investment, a wholly owned subsidiary of Julius Baer Group.
Under the terms of the deal, Jupai will issue to Julius Baer 9,591,000 ordinary shares, which represents nearly 4.99% of the its total outstanding share capital upon completion of the deal, at $1.83 per share.
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Additionally, Jupai will issue Chinese online media company SINA 2,880,000 ordinary shares, which represents approximately 1.5% of its total outstanding share capital after the completion of the transaction.
This agreement will increase SINA’s stake in Jupai to 11.4%.
The total transaction value of the private placement to Julius Baer and SINA is approximately $22.9m and is scheduled to complete in January 2016.
Jupai co-chairman of the board of directors and CEO Jianda Ni said: "We expect the cooperation between our two companies will further diversify Jupai’s product categories and add more overseas financial products to our existing product lines, allowing us to better meet the demand for overseas asset allocation among Jupai’s clients.
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By GlobalData"In addition, Julius Baer’s valuable experience in the wealth management industry will help to further improve the expertise of Jupai’s financial advisors."
Julius Baer CEO Boris Collardi said: "Participating in Jupai’s private placement will provide Julius Baer with valuable insight into one of the most successful players in Chinese onshore wealth management and further strengthen our expertise in China, whilst providing Jupai access to our global investment know-how."
