By Dean Seal
Shares of FLJ Group experienced an impressive surge following the completion of its acquisition of the insurance agency Alpha Mind. In addition, the company terminated its proposed acquisition of another company.
In premarket trading, the stock rose by a remarkable 72% to reach $2.37, which is a significant turnaround considering that shares had fallen by 99% year-to-date as of Thursday's market close.
Termination of Acquisition Agreement
FLJ Group, based in Shanghai and formerly operating an apartment rental platform, announced on Thursday evening that it has mutually agreed to terminate its agreement to acquire marketing and promotion services company Lianlian Holdings for 1.8 billion yuan ($246.7 million).
Successful Acquisition of Alpha Mind
FLJ Group also confirmed the completion of its deal to purchase all outstanding shares of Alpha Mind for $180 million (or the equivalent in Chinese yuan), which was paid in the form of a promissory note. As a result, Alpha Mind, an insurance agency and insurance technology business operating in China, is now a wholly owned subsidiary of FLJ Group.
FLJ Group had previously revealed its intention to sell its subsidiary that operated an apartment rental business back in October.