Ashurst advised on Shanghai Jin Jiang Capital HK43 billion privatisation
02 June 2022
Global law firm Ashurst represented Orient Capital (Hong Kong) Limited and Nomura International (Hong Kong) Limited as joint financial advisors on the privatisation of Shanghai Jin Jiang Capital Company Limited (SEHK: 2006, the Offeree) for and on behalf of the Offeror Jin Jiang International Holding Company Limited, for a total consideration of approximately HK$4.3 billion.
Shanghai Jin Shao (HK) Investment & Management Co., Limited (Borrower), a wholly-owned subsidiary of the Offeror, has undertaken with the Offeror to pay on its behalf the total consideration for cancellation of the H Shares of the Offeree, and the Offeror has obtained the financing for the Merger from a loan facility in the principal amount of HK$4 billion obtained by Shanghai Jin Shao (HK) Investment & Management Co., Limited (Borrower) from Industrial and Commercial Bank of China (Asia) Limited (Lender).
The Jin Jiang Group is principally engaged in the investment and operation of hotels, passenger transportation vehicles, logistics and travel agency businesses. The transaction provides shareholders an excellent opportunity to realise their investments in the Offeree at a premium and at a time when the market outlook of the Group is uncertain during the pandemic.
The structure of this privatisation involves the Offeror being an onshore entity whereas the payment entity, being a wholly-owned subsidiary of the Offeror, is an offshore entity incorporated in
Hong Kong. This transaction showcases the outstanding quality of Ashurst's legal service, particularly in public M&A and privatisations.
The Ashurst team was led by partner Frank Bi, supported by Phiona So, Christy Li, Joey Lam and Phil Wang.
