picc Health Insurance Company Limited announced that it has entered into a capital increase agreement for private placement of 2,118,644,067 common shares at CNY 1.18 per share for gross proceeds of CNY 2,499,999,999.06 on June 23, 2016. The transaction will include participation from new investor PICC Property and Casualty Co. Ltd. (SEHK:2328) to acquire 24.73% stake in the company. The registered capital of the company will increase from CNY 6,449,770,670 to CNY 8,568,414,737. The company will issue shares at premium. Upon completion, The People's Insurance Company (Group) of China Limited (SEHK:1339) will hold 69.32% stake in the company, DKV Deutsche Krankenversicherung AG will hold 2.22% stake in the company, and PICC Investment Holding Company Limited will hold 1.40% stake in the company. The transaction is subject to the approvals from the China Insurance Regulatory Commission and other relevant government authorities. The company will receive funding in cash and one-off and expects to close the transaction by June 24, 2016. The company has reported total assets of CNY 32,831,000,000, net assets of CNY 3,410,000,000, loss after tax of CNY 135,000,000, and loss before tax for CNY 204,000,000 for the year ended December 31, 2015.