Shaanxi To Buy Stake In CNinsure

(RTTNews) - CNinsure Inc (CISG), a Chinese online-to-offline financial services provider, on Wednesday said that Shaanxi J&R Firefighting Inc, a maker of fire protection equipment in China, has entered into a share purchase agreement with Kingsford Resources Ltd, a company owned by members of CNinsure's management, to acquire a stake in CNinsure.

Pursuant to the share purchase agreement, Shaanxi will purchase from Kingsford 63.32 million ordinary shares of CNinsure, the equivalent of about 3.17 million of CNinsure's American depositary shares, for a total purchase price of about $37.4 million in cash.

The purchase price is equal to $0.59 per ordinary share (the equivalent of $11.8 per ADS) representing a 33.6 % premium above the June 30 closing price.

Upon the closing of the transaction, Shaanxi will hold about 5.5% of CNinsure's outstanding shares.

The closing is expected to take place within 60 days.