LAWFUEL – Legal News, Legal Jobs – In a particularly fast sprint…

LAWFUEL – Legal News, Legal Jobs – In a particularly fast sprint to the end of year finish line, Linklaters’ China team has closed five deals worth well over US$4.6 billion over the past four weeks. As usual, the firm is dominating the financial services sector with approximately US$4.4 billion of those deals being strategic investments into banks in mainland China.
Beyond the banking deals, Linklaters has closed two landmark deals for major international brands Diageo and Home Depot.

The detail:

Linklaters advises Citigroup on the US$3.06bn consortium acquisition of Guangdong Development Bank

Linklaters advised Citigroup, which led the consortium on its bidding and negotiation process over a period of 16 months, on the landmark consortium acquisition of an 85.6% stake in Guangdong Development Bank (GDB) for US$3.06 billion. This deal is significant in that it is the first time a major international financial services company, leading a consortium of co-investors, has been permitted to assume significant influence over the management of a Chinese commercial bank.

Linklaters fielded a large partner team on this deal. Zili Shao and Paul McNicholl (Shanghai) led the team with assistance from partners Betty Yap, Paul Chow and Keith Johnson (Hong Kong), Nick Rees (London) and Andrew Mackie (New York).

Linklaters advises Carlyle and Dah Sing Bank on US$128m acquisition of a 24.99% stake in Chongqing City Comercial Bank

Linklaters advised US private equity firm The Carlyle Group and Hong Kong-based lender Dah Sing Bank on their acquisition of a total 24.99% stake, worth approximately US$128 million, in Chongqing City Commercial Bank from the lender’s largest shareholder Chongqing Yufu Asset Management. The agreement will see Dah Sing Bank take a 17% stake, while Carlyle will take a 7.99% stake in the Chongqing bank. Chongqing City Commercial Bank is the tenth Chinese city commercial bank which has brought in foreign strategic investors.

Linklaters’ transaction team was led by partner Fang Jian (Shanghai) with assistance from Tang Yiyun and Bryan Chan.

Linklaters advises BBVA on its US$1.27bn strategic alliance with CITIC Group

Linklaters advised Banco Bilbao Vizcaya Argentaria (BBVA) of Spain both on its €501 million acquisition of a 5% stake in China CITIC Bank in the PRC and on its €488 million acquisition of a 15% stake in Hong Kong-listed CITIC International Financial Holdings, making a total investment of €989 million (US$1.27 billion).

Partners Simon Poh (Shanghai), Miles Hugh Curley (Madrid) and Celia Lam (Beijing) led this deal.

Linklaters advises Diageo Highlands Holding B.V. on its acquisition of a 43% equity interest in Sichuan Chengdu Quanxing Group Co Ltd

Linklaters advised Diageo Highlands Holding B.V., a subsidiary of Diageo plc, on its acquisition of a 43% equity interest in Sichuan Chengdu Quanxing Group Co. Ltd. which holds an approximate 39% shareholding of Sichuan Shi Jing Fang Co. Ltd., a company listed on the Shanghai Stock Exchange and a leading company in the Chinese White Spirit (CWS) market. This is a landmark deal as it is one of the first M&A deals to be done involving considerations under both the new M&A Rules and the new PRC Takeovers Rules which came into effect in September 2006

Partner Betty Yap (Hong Kong) and Paul McNicholl (Shanghai) led the transaction team with assistance from managing associate Richard Gu.

Linklaters advises on Home Depot acquisition in Northern China

Linklaters advised HD Asia Holding Company Ltd., a Mauritius investment vehicle set up by Home Depot USA Inc., as purchaser on the acquisition by The Home Depot Group of a 100% equity interest in Homeworld. The target and its six wholly-owned subsidiaries have 12 home improvement stores across Northern China including Tianjin, Beijing, Xi’an, Qingdao and Shenyang. This is a landmark M&A transaction in the retail sector, involving a 100% foreign acquisition of a local home improvement chain.

Partners Simon Poh (Shanghai), Betty Yap (Hong Kong) and Zili Shao (Shanghai) led the large transaction team with assistance from partners and associates across Hong Kong, Shanghai and Beijing.

Zili Shao, Linklaters managing partner for Greater China, said:

“All of these deals have a profound impact on the China M&A landscape. We have had another fantastic year in the China M&A market, and I am pleased to see our deal teams continuing their record of success in bringing transactions to a close here.”

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