omniture

National Agricultural Signs Strategic Cooperation Framework Agreement with China Innovationpay

Agreement signed to develop mobile application for Agripay and Enhance Cooperation in Internet Finance Industry Chain via Mutual Share Subscription
National Agricultural Holdings Limited
2015-06-26 13:03 3565

HONG KONG, June 26, 2015 /PRNewswire/ -- National Agricultural Holdings Limited ("National Agricultural", or together with its subsidiaries, the "Group"; stock code: 1236.hk) today announced that it has signed a Strategic Cooperation Framework Agreement with China Innovationpay Group Limited ("China Innovationpay") with a view to boosting mobile transactions, diversifying payment methods, and promoting third-party payment throughout the Internet finance industry chain. Following the joint operation of electronic prepaid card business with UnionPay, National Agricultural continues to build cooperative relationships with high-quality third-party payers to improve its existing payment and settlement system. The two parties will jointly develop functions of the mobile application and payment platform of the "Agripay System" ("Agripay") to improve the Group's competitiveness in agri-related mobile payment and the rural finance sector. In addition, National Agricultural and China Innovationpay have signed the Innovationpay Subscription Agreement and Preferred Shares Subscription Agreement to strengthen their business ties via mutual investment, which is a testament to the Group's solid business development process and to China Innovationpay's confidence in the Group's long-team progress.

China Innovationpay is an investment holding company, and its subsidiaries are principally engaged in businesses that include trading of electronic products, network hardware equipment, financial equipment and communication products, as well as a prepaid card business, travel VIP card products business and the provision of online air-tickets and hotel reservation services for individual and corporate customers, etc.

Pursuant to the Strategic Cooperation Framework Agreement signed by National Agricultural and China Innovationpay, the latter shall act as a strategic cooperation partner in respect of the Group's payment system, and will provide all-rounded software and hardware payment solutions plan to the Group for its fund collection and clearance services. Furthermore, the two parties are committed to projects such as the development of a mobile application for Agripay and in future, Agripay pre-paid card. Moreover, National Agricultural and China Innovationpay will join hands to explore financial products and services in the agricultural value chain, to develop personal credit information system for rural villages, and to establish online financial platform to fulfil the financial needs of rural residents. In addition, Guonong Taifeng, a subsidiary of National Agricultural, together with Beijing Gaohuitong - an indirect wholly-owned subsidiary of China Innovationpay - signed a Technology Service Agreement to kick off cooperation in developing mobile applications and an Internet payment system, and conducting online fund settlement.

The cooperation between National Agricultural and China Innovationpay not only provides a clear direction for the two parties' efforts, but also helps them strengthen their alliance via mutual direct investment. According to the Innovationpay Subscription Agreement, the Group has conditionally agreed to subscribe for a total of 194,174,000 Shares of China Innovationpay at a subscription price of HK$1.03 per Innovationpay Share, or an aggregate Innovationpay Subscription Price of approximately HK$200 million, with a lock-up period of 18 months. Meanwhile, the Group and China Innovationpay signed a Preferred Shares Subscription Agreement pursuant to which the Group has conditionally agreed to allot and issue a total of 49,140,000 Preferred Shares to Innovationpay at an issue price of HK$4.07 per Preferred Share (representing a discount of approximately 16.94% to the closing price of HK$4.90 of National Agricultural as at the last trading day immediately preceding the date of the Preferred Shares Subscription Agreement). Upon full conversion of the Preferred Shares, 49,140,000 Conversion Shares will be allotted and issued, representing approximately 2.34% of the issued ordinary shares of the Group. The aggregate Preferred Shares Subscription Price amounts to approximately HK$200 million.

Mr. Chen Li-jun, Chairman of National Agricultural, said, "The bond between National Agricultural and China Innovationpay, whether in terms of strategies and technologies or in terms of mutual subscription of shares, presents sound opportunities for both parties to leverage their respective strengths to pursue strategic collaboration in areas such as agriculture-related payment, trading of agricultural products and financial services, and enables them to jointly establish an electronic platform for comprehensive financial services that will cater to the needs associated with rural reconstruction. We believe that the strategic cooperation between both parties will lay a solid foundation for the improvement of Agripay, and will provide continuous momentum to the Company's development in the rural finance sector."

About National Agricultural Holdings Limited

National Agricultural Holdings Limited (SEHK code: 1236.HK) is a rural market-based company that integrates financial services, agri-related trade, information, industry and science research. Its principal businesses are rural financial services, trading in agricultural means of production, urbanization planning, operation and management and high-tech information technology, etc. These directives are fully implemented to accommodate China's strategic goal of vigorously developing the "Agriculture, Rural Areas and Farmer" sector and a new model of urbanization.  Hebei Supply and Marketing Cooperative made an equity investment in National Agricultural Holdings through its subsidiary Parko (HongKong) Ltd. in November 2013.

Source: National Agricultural Holdings Limited
Related Stocks:
HongKong:1236
collection