Reorient Group Limited (376.HK) Announces HK$3.9 Billion (US$500 Million) in New Share Subscriptions

HONG KONG, CHINA--(Marketwired - May 29, 2015) -  Reorient Group Limited ("Reorient"), listed on the HKEx main board and a provider of financial services businesses in Hong Kong and the U.S., has announced that it has entered into share subscription agreements with Yunfeng Financial Holdings Limited ("YFHL") and four other investors for a total of approximately 1.94 billion shares at an issue price of HK$2.00 per share, raising approximately HK$3.9 billion in fresh capital.

Completion of the transaction is subject to shareholders and various regulatory approvals, as well as customary completion conditions. When the transaction is completed, approximately 56.00% of the enlarged share capital of Reorient Group will be controlled by YFHL through its indirectly controlled subsidiary Jade Passion. Another 25.00% of the enlarged share capital will be separately held by four other new investors, and the remainder will be held by current shareholders of Reorient. 

The net proceeds from this transaction are to be utilized by Reorient to support the development of its existing financial services businesses and as general working capital.

Reorient Chairman Mr. Johnson Ko expressed his delight about the transaction and the future prospects of Reorient: "We have worked hard for four years to build a specialist investment banking firm from scratch. I view the transaction with YFHL as validation to the success of our efforts. I am delighted, in particular, about the expertise of our new partners in the e-commerce and e-finance space, which defines new challenges and -- I'm convinced -- a prosperous new direction for Reorient."

Mr. David Yu, Chairman of YFHL, commented: "The steady evolution of RMB internationalization and the opening of the Shanghai - Hong Kong Stock Connect represent development opportunities for the overall Hong Kong capital market. These events have coincided with the rapid penetration of Internet Finance and Big Data technologies, which is profoundly effecting the changes and progression of the entire financial services industry. The combination of data and financial technology will not only yield improved efficiency on volume conversion, but also strengthen product transparency, diversification and differentiation, which shall in turn drive scalability of the securities and financial industry. This is a strategic investment for us, very much in line with our endeavour in the financial technology space as well as in extending our global reach. Reorient Group has established service capabilities in both Hong Kong and the U.S., with an outstanding senior management team and a proven track record of innovative and risk management. We look forward to the joint exploration with Reorient in areas such as Internet Finance and are confident about the future prospects of the company."

In the coming weeks, Reorient will be issuing a circular with further details of the transaction together with, among other things, the recommendations of the independent board committee and an independent financial adviser to its shareholders for the transaction to be approved at an extraordinary general meeting of Reorient Group Limited in accordance with the requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Codes on Takeovers and Mergers and Share Buy-backs issued by the Securities and Futures Commission.

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