LAWFUEL – Law News Network – Mallesons Stephen Jaques has advised New Zealand’s Carter Holt Harvey on the sale of the Plantation Timber Products (PTP) business to CVC Asia Pacific. PTP is principally engaged in the manufacture and distribution of speciality medium density fibreboard and flooring products in China.
The sale was conducted by private auction and CVC Asia Pacific was the successful bidder. The deal contributes to the growing market for secondary private equity investments in China as Carter Holt Harvey had previously acquired PTP in 2004 from private equity investors.
As lead counsel to Carter Holt Harvey, Mallesons conducted extensive seller due diligence. The firm set up a virtual deal room which managed the disclosure and Q&A process with bidders and was open for access from any point around the world on a 24/7 basis. Mallesons implemented a complex pre-sale restructuring process within China and offshore. Its lawyers were involved in negotiations with the potential bidders and their professional advisers, drafted the transaction documents and advised on regulatory issues.
Mallesons financial services team also worked closely with Carter Holt Harvey’s financial adviser, Credit Suisse, to develop a stapled financing offering to bidders to leverage the equity component on-shore and offshore and provide a financial incentive to management.
Lead partner Stuart Valentine said: “In this transaction, we combined our extensive legal experience with multinationals doing business in China with our strong on-the-ground M&A capabilities to help our client achieve a successful outcome. Our track record in China continues to grow and attract new instructions”.
For this transaction, Mallesons drew on its resources across Hong Kong, Beijing, Shanghai and its Australian offices, and assembled a team of lawyers with expertise in M&A, China practice, environmental law and finance. Stuart Valentine, who has 20 years’ legal experience representing clients in Greater China, worked together with finance partner Steven Christopher and environmental law partner Christopher Tung. They were supported by senior associates: Nicolas Groffman, Jeffrey Mak, Rebecca McNicol and Adam Newgreen, as well as by Catherine Chen, Aaron Borg, Keith Cheung, Veronica Chow, Zhou He, Zoe Yao, Gigi Wong and Jasmine Keung. Mallesons’ applied legal technology team in Asia and Australia provided the virtual data room services.