The deal will make Convoy one of the largest financial advisory companies in Asia. According to the agreement, the payment will be made in two tranches – the first will be a maximum of HK$64,896,000 and the second will be up to HK$97,344,000.
The second tranche is dependent on IPP generating at least HK$25,958,400 after tax net profit in any of the four consecutive quarters within the 24 month period from 1 January 2012 to 31 December 2013. Should IPP not meet this target, Convoy will pay a reduced amount in the second tranche.
IPP is currently one of the largest financial advisory companies in Singapore with over 400 employees. Its main areas of business include life insurance, investment planning and investment advice. It was the subject of a profile in International Adviser’s April 2009 edition, which may be viewed here.
Quincy Wong, chairman of Convoy said: “Following the group’s announcement earlier on being one of the first companies to enter the insurance intermediary market in Mainland China through CEPA, we further expand our business footprint to the Singapore market, which is consistent with the ‘regional expansion’ strategy that we implement.
“In the future, the group will continue to pursue mergers and acquisitions opportunities beyond Hong Kong especially in Asian markets to create synergies through acquiring and developing insurance agencies, insurance brokers, investment advisory companies and independent financial advisory companies in the region (including China) and in result becoming one of the largest and leading independent financial advisory companies in Asia.”