Hong Kong, 21 April 2007 – LAWFUEL – The Law Firm Newswire – Baker &…

Hong Kong, 21 April 2007 – LAWFUEL – The Law Firm Newswire – Baker & McKenzie’s mergers & acquisitions team in Hong Kong recently advised Chinese conglomerate Beijing Enterprises Holdings Limited on its acquisition of Beijing Gas Group (BVI) Co., Ltd. from Beijing Enterprises Group Limited, which is wholly-owned by the Beijing municipal government, for HK$11.6 billion. The Sale and Purchase Agreement was signed on 10 April 2007. Completion is scheduled to take place on 30 June 2007.

Beijing Gas Group is principally engaged in the business of the supply and sale of piped natural gas and related businesses in Beijing. It is also the leading urban supplier of natural gas in China. The purchase will be financed by HK$4 billion in cash and the issuance of 411.3 million new shares at HK$18.48 each, worth Hk$7.6 billion. Immediately after completion of the transaction, the Beijing municipal government will control 71.12 per cent of the listed entity.

Beijing Enterprises Holdings Limited, a Hong Kong-listed company, is the investment arm of the Beijing municipal government, and focuses on urban utilities and infrastructure. It also controls Beijing Yanjing Brewery, toll roads, expressways and water treatment plants.

The Baker & McKenzie team led by corporate partners Cheung Yuk Tong and Dorothea Koo acted as deal counsel on this complex transaction. They were assisted by associates Rossana Chu and Tony Chong as well as a team of lawyers from the firm’s corporate, finance and tax teams.

CICC acted as financial adviser to Beijing Enterprises Holdings Limited and CLSA Equity Capital Markets Limited acted as independent financial adviser to the independent board committee and the independent shareholders of the company.

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