Reference News reported on 12 December, citing British media, that ZhongAn Online P&C Insurance - China's largest internet insurer - said it plans to set up a joint venture with Beston, a company controlled by its chairman and executive director Ou Yaping, to explore international business development, cooperation and investment opportunities in fintech and insurtech in overseas markets.

        According to a Reuters report from Hong Kong on 11 December, the announcement said ZhongAn's unit ZhongAn Technology and Beston have conditionally agreed to inject RMB 50 million and RMB 60 million in cash respectively into the wholly-owned company, in exchange for ordinary shares of the joint venture; and Beston has conditionally agreed to make an additional cash injection of RMB 620 million into the joint venture, in exchange for redeemable preference shares.

        After completion, ZhongAn Technology and Beston will hold 51% and 49% of the voting interests in the joint venture respectively.

        Under the terms of the redeemable preference shares, the holder shall be entitled to receive, in priority, dividends equal to 70% of the joint venture's distributable profits for each accounting period out of the funds of the joint venture that are available for distribution and resolved to be distributed as dividends.

         Beston is a company 45.11% owned by Ou Yaping, principally engaged in real estate, financial services and asset financing. According to ZhongAn's 2017 interim report, the domestic shares held by Ou Yaping account for about 5.63% of ZhongAn's issued share capital.

        ZhongAn said the joint venture will serve as ZhongAn Technology's international development platform, responding to the "Belt and Road" initiative proposed by the Chinese government.

        A Reference News "Going Global" reporter learned that the joint venture will serve as ZhongAn Technology's international development platform.

Source: Reference News 2017-12-12