LAWFUEL – The Law Firm Newswire – Herbert Smith has advised Goldman Sachs (Asia) and UBS as placing agents on the HK$1.58 billion ($202 million) placing of existing shares and top-up share placement of China Yurun Food Group Limited, a food and beverage company. The company intends to apply the net proceeds of HK$770.8 million for capacity expansion projects for its upstream and downstream meat processing businesses and as general working capital.
The share placement comprised 150,000,000 shares, representing approximately 10.33% of China Yurun’s existing share capital and 9.83% of its enlarged share capital. Half of the deal was composed of a top-up placing involving new shares. The remaining 75,000,000 shares involved a straight sell-down by China Yurun’s Chairman, Zhu Yicai, through Willie Holdings Limited.
China Yurun Food Group Limited is a meat product supplier based in Nanjing, China. The company offers a range of chilled and frozen pork, low temperature meat products and high temperature meat products, mainly pork meat. The products are marketed under a variety of brands, including Yurun, Furun, Wangrun and Popular Meat Packing.
Herbert Smith advised on the US and Hong Kong law aspects of the transaction. Corporate partner John Moore led the team and was assisted by associates Matt Emsley, Michelle Zhou and Vivian Wang.
John Moore commented:
“The success of the China Yurun share placing follows our other recent equity transactions in the China market. Our capital markets teams worked closely with Goldman Sachs and UBS to complete the placing on a rapid timetable. This latest transaction confirms our position as one of the leading advisers in the global capital markets.”
Norton Rose acted as Hong Kong counsel for China Yurun on the transaction. Conyers Dill & Pearman acted as BVI and Bermuda counsel.