Yirendai announces business realignment with CreditEase
Yirendai announced that it has entered into definitive agreements relating to a business realignment with CreditEase Holdings, or CreditEase, the controlling shareholder of the company, to better serve its investors and borrowers. Pursuant to the definitive agreements, Yirendai will assume certain business operations, including online wealth management targeting the mass affluent, unsecured and secured consumer lending, financial leasing, SME lending, and other related services or businesses from CreditEase and its affiliates, for a total consideration of 106,917,947 newly issued ordinary shares of Yirendai and RMB889M cash, as may be adjusted in accordance with the pre-agreed mechanism, at the transaction closing. Ning Tang, the executive chairman of Yirendai, who is also the founder, chairman and CEO of CreditEase, will assume the CEO role of Yirendai upon the closing of the transactions. CreditEase has also agreed not to compete with the company and to provide business consulting and other support and license certain intellectual properties to the company. The transactions contemplated under the definitive agreements are subject to certain closing conditions. It is expected that the Target Businesses will be consolidated into Yirendai's consolidated financial statements prior to the closing of the transactions once controls are transferred to Yirendai. The company's Board of Directors, acting upon the unanimous recommendation of its Audit Committee consisting of independent and disinterested directors, approved the definitive agreements and the transactions contemplated thereunder. The Audit Committee reviewed and considered the terms of the definitive agreements and the transactions with the assistance of its financial and legal advisors.