OneConnect Announces Extraordinary General Meeting Results

Rhea-AI Summary

OneConnect Financial Technology Co., Ltd. announced the approval of a share purchase agreement at its extraordinary general meeting of shareholders. The agreement involves the sale of Ping An OneConnect Bank (Hong Kong) Limited to Lufax Holding Ltd for HK$933,000,000.

Financial Analyst

The approval of the Share Purchase Agreement between OneConnect Financial Technology Co., Ltd., Lufax Holding Ltd and Ping An OneConnect Bank represents a significant transaction within the financial technology sector. The transaction amount of HK$933,000,000 for the sale of PAOB indicates a strategic move by OneConnect to divest an asset, which could be interpreted as a focus on core competencies or a need for liquidity. The capital infusion for OneConnect could potentially be used for debt reduction, investment in technology, or expansion into new markets. The impact on OneConnect's balance sheet and future earnings could be substantial, depending on how the proceeds are utilized.

For Lufax, acquiring PAOB could mean an expansion of its banking capabilities and market presence, possibly leading to increased revenue streams. Investors should monitor subsequent financial statements to assess the impact of this acquisition on Lufax's profitability and market share. The transaction could also affect industry competition, as consolidation within the sector may provide Lufax with a competitive edge over other fintech companies.

Market Research Analyst

From a market perspective, this transaction between OneConnect and Lufax is likely to influence investor sentiment towards both companies. For OneConnect, the successful sale of a significant asset like PAOB could be seen as a positive development, suggesting a strategic refocusing or an intent to streamline operations for better efficiency. Market analysts will be scrutinizing the company's future investment decisions to understand the strategic direction post-sale.

On the other hand, Lufax's acquisition could be viewed as a move to strengthen its position in the financial services industry. The integration of PAOB into Lufax's portfolio will be closely watched for synergy realization and performance enhancement. Shareholders and potential investors will be interested in how this acquisition aligns with Lufax's long-term growth strategy and whether it will contribute to a sustainable competitive advantage.

Legal Expert

The authorization granted to the Directors of OneConnect to execute all necessary actions to implement the Share Purchase Agreement highlights the importance of corporate governance in such transactions. It underscores the legal complexities and due diligence required in executing large-scale financial agreements. Ensuring compliance with regulatory requirements and protecting shareholder interests are critical aspects that the Directors must oversee. The legal ramifications of the transaction, including potential changes in regulatory status or obligations, will be an area of focus. It is essential for stakeholders to consider any legal disclosures or contingencies that may arise from this agreement and how they may impact the companies involved.

SHENZHEN, China, Jan. 16, 2024 /PRNewswire/ -- OneConnect Financial Technology Co., Ltd. ("OneConnect" or the "Company") (NYSE: OCFT and HKEX: 6638), a leading technology-as-a-service provider for financial institutions in China, today announced the results of its extraordinary general meeting of shareholders held in Shenzhen on January 16, 2024.

At the meeting, the shareholders of OneConnect Financial Technology Co., Ltd. approved, ratified and/or confirmed the following resolution:

The share purchase agreement dated November 13, 2023 (the "Share Purchase Agreement") entered into among Lufax Holding Ltd ("Lufax"), OneConnect Financial Technology Co., Ltd. ("OneConnect") and Ping An OneConnect Bank (Hong Kong) Limited ("PAOB"), pursuant to which OneConnect conditionally agreed to sell, and Lufax conditionally agreed to acquire PAOB through transferring the entire issued share capital of Jin Yi Tong Limited, a company which indirectly holds 100% of the issued share capital of PAOB at a consideration of HK$933,000,000 be and is hereby approved, ratified and confirmed; and any one Director of the Company be and is hereby authorized, in his or her absolute discretion deemed appropriate or expedient and in the interests of the Company and its shareholders as a whole, to do all such acts and things which he/she may consider necessary, desirable or expedient to implement the transactions contemplated under the Share Purchase Agreement and completion thereof.

About OneConnect

OneConnect Financial Technology Co., Ltd. is a technology-as-a-service provider for financial services industry. The Company integrates extensive financial services industry expertise with market-leading technology to provide technology applications and technology-enabled business services to financial institutions. The integrated solutions and platform the Company provides include digital banking solution, digital insurance solution and Gamma Platform, which is a technology infrastructural platform for financial institutions. The Company's solutions enable its customers' digital transformations, which help them improve efficiency, enhance service quality, and reduce costs and risks.

The Company has established long-term cooperation relationships with financial institutions to address their needs of digital transformation. The Company has also expanded its services to other participants in the value chain to support the digital transformation of financial services eco-system. In addition, the Company has successfully exported its technology solutions to overseas financial institutions.

For more information, please visit ir.ocft.com. 

Contacts

Investor Relations:
OCFT IR Team
OCFT_IR@ocft.com

Media Relations:
Frank Fu
pub_jryztppxcb@pingan.com.cn

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SOURCE OneConnect Financial Technology Co., Ltd.

What was approved at the extraordinary general meeting of shareholders?

The approval, ratification, and confirmation of the share purchase agreement involving the sale of Ping An OneConnect Bank (Hong Kong) Limited to Lufax Holding Ltd for HK$933,000,000.

What is the ticker symbol for OneConnect Financial Technology Co., Ltd.?

The ticker symbol for OneConnect Financial Technology Co., Ltd. is OCFT.

What is the consideration for the sale of Ping An OneConnect Bank (Hong Kong) Limited to Lufax Holding Ltd?

The consideration for the sale is HK$933,000,000.