April 29, 2018 / 10:32 PM / 3 months ago

BRIEF-Baidu Enters Definitive Agreements To Divest Financial Services Business

April 29 (Reuters) - Baidu Inc:

* BAIDU ENTERS INTO DEFINITIVE AGREEMENTS TO DIVEST ITS FINANCIAL SERVICES BUSINESS

* ENTERED INTO DEFINITIVE AGREEMENTS WITH CERTAIN INVESTORS RELATING TO DIVESTITURE OF ITS FINANCIAL SERVICE BUSINESS

* INVESTORS ARE LED BY TPG AND CARLYLE GROUP, WITH PARTICIPATION FROM TAIKANG GROUP, ABC INTERNATIONAL HOLDINGS AND OTHERS

* WILL DIVEST A MAJORITY EQUITY STAKE IN FSG, WHICH HAS BEEN RENAMED AS DU XIAOMAN FINANCIAL

* BAIDU - DU XIAOMAN WILL RAISE ABOUT US$1.9 BILLION, AMONG WHICH DU XIAOMAN WILL RECEIVE $840 MILLION WITH REMAINING BALANCE USED TO PURCHASE EXISTING STAKE

* UPON COMPLETION OF TRANSACTION, BAIDU WILL OWN APPROXIMATELY 42% OF DU XIAOMAN’S OUTSTANDING SHARES

* UPON COMPLETION OF TRANSACTION, BAIDU WILL NO LONGER HAVE EFFECTIVE CONTROL OVER DU XIAOMAN

* DU XIAOMAN WILL OPERATE INDEPENDENTLY FROM BAIDU AND WILL ENTER INTO BUSINESS COOPERATION ARRANGEMENTS WITH BAIDU

* GUANG ZHU, BAIDU SENIOR VICE PRESIDENT AND GENERAL MANAGER OF FSG, WILL BECOME CEO OF DU XIAOMAN Source text for Eikon: Further company coverage:

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