Hong Kong – September 12, 2006 LAWFUEL – Legal News Network – The international law firm of Jones Day announced that it has recently advised Fang Brothers Investments Limited in the HK$1.14 billion sale by subsidiary CS Investment (CS) of a 50% interest in Times Supermarket Limited (Times) to Wumart Stores, Inc.(Wumart), Beijing’s largest supermarket chain.
Jones Day’s deal team in Hong Kong led by Carson Wen, a partner in Jones Day’s Hong Kong mergers and acquisitions practice, includes Katherine U and Benjamin Kwan. Haiwen & Partners and Coudert Brothers provided legal counsel to Wumart. The transaction completion date is expected to be on or before December 31, 2006.
According to the agreement, Wumart will pay HK$570.9 million in cash and 24.8 million of new H shares constituting 7.5 per cent of its expanded share capital worth HK$570.9 million to CS. The newly issued shares will be priced at HK$23 per share.
After the transaction, CS and Wumart will each own 50% of the total equity interests in Times respectively and Times will become an associated company of Wumart. .
Currently, Times operates 45 superstores in eastern China. Ranked 28th among the top retailers in China in terms of first-half-year revenue for 2006, Times recorded HK$2.7 billion in revenue and HK$61 million in net profit in 2005.
“This transaction is among many M&A deals in China this year. I foresee continued increase in M&A activities in China, as a growing number of Chinese companies look to acquire foreign assets and more and more foreign investors test China’s investment waters,” commented Mr. Carson Wen. “Jones Day, with its local and global expertise and extensive experience in M&A, is the ideal partner for companies operating in China. We will continue to provide premium services to both foreign and Chinese corporations.”
Jones Day is an international law firm with 30 locations in centers of business and finance throughout the world. The firm is celebrating its 20th year in Hong Kong; it was the first U.S.-based law firm permitted to practice Hong Kong law. With more than 2,200 lawyers, including more than 400 in Europe, and 175 in Asia, it ranks among the world’s largest law firms. Jones Day acts as principal outside counsel to, or provides significant legal representation for, more than half of the Fortune Global 500 companies.