LawFuel – Hong Kong: Clifford Chance’s award-winning private equity te…

LawFuel – Hong Kong: Clifford Chance’s award-winning private equity team has advised special purpose vehicles established by funds advised by CVC Asia Pacific (“CVC”) on the largest announced investment by a private equity fund in a PRC listed company, and separately, on CVC’s first investment in Malaysia.

Our Hong Kong and China-based teams advised CVC on its RMB1.65 billion (approximately US$213 million) acquisition of a 29% interest in tradeable A-shares in Zhuhai Zhongfu Enterprise Co., Ltd., which is listed on the Shenzhen Stock Exchange and is one of the largest beverage bottling companies in China. This is to date the largest announced investment by a private equity fund in a PRC listed company following recent regulatory reform which allows foreign investors to take strategic stakes in tradeable A-shares of a PRC listed company. The acquisition remains subject to regulatory and target shareholder approval.

Our Hong Kong-based team also advised CVC on its approximate US$210 million LBO of the Malaysian paper and packaging business of Genting Berhad. The business acquired comprises two paper mills (the capacity of which represents 30% of Malaysia’s total brown paper output) and two corrugated mills (with a 15% market share in Malaysia). This transaction is CVC’s first investment undertaken in Malaysia and one of the first, and largest, MBOs in Malaysia. The acquisition remains subject to regulatory approval.

Commenting on the deals, private equity partner Andrew Whan said:

“We’re delighted to have assisted CVC make these important strategic investments, both firsts for the Asian region. We were able to leverage our considerable experience in both the PRC and Malaysia to help CVC navigate the complex, and in the case of the PRC regulations, untested regulatory frameworks. The PRC continues to attract significant interest from private equity investors and Malaysia continues to mature as a private equity market.”

Both deals were led by Andrew Whan. In the acquisition of the stake in Zhuhai Zhongfu Enterprise Co., Ltd., Andrew was assisted by Beijing corporate partner Rupert Li, Beijing finance and banking partner, Ting Ting Tan, Hong Kong senior associates, Terence Foo and Eric Poon and Shanghai associate, Qianyi Li. Assisting Andrew in advising CVC on the acquisition of the Malaysian paper and packaging business were Hong Kong finance and banking partner, Huw Jenkins, Hong Kong senior associates Neeraj Budhwani and Teresa Chong and Hong Kong associate Joanna Dunn.

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