Clifford Chance Private Equity Team Advises On Public Takeover In China

Hong Kong: LAWFUEL – The Law Firm Newswire – Clifford Chance’s Asian private equity team has advised CVC Asia Pacific Limited (CVC) on a landmark public takeover transaction in mainland China.

The deal marks the largest private equity investment to date in tradeable A-shares of a PRC-listed company and is the first control-oriented PIPE (private investment in public equity) deal in China involving a direct investment in tradeable A-shares.
CVC acquired a 29% interest in Zhuhai Zhongfu Enterprise Co., Ltd. from its controlling shareholder for approximately US$225 million. Zhuhai Zhongfu, which is listed on the Shenzhen Stock Exchange, is the largest PET bottling company in China and supplies PET bottles to Coca-Cola and Pepsi.

The transaction was signed in March 2007 and received the approval of the Ministry of Commerce in September 2007, one of the few control-oriented private equity deals approved by the Chinese central government. The transaction closed successfully last week.
CVC has been one of the most active private equity investors in Asia Pacific and Australasia in recent years, completing a substantial number of investments in the region.

The team advising CVC comprised private equity partner Andrew Whan, senior associate Terence Foo and associate Li Qianyi.
“We’ve worked closely with CVC on a number of successful deals in Asia over recent years and are pleased to have assisted CVC on this acquisition,” said Andrew.

“We were breaking new ground at every step of the process – CVC’s acquisition of a significant minority stake in Zhuhai Zhongfu was the first control-oriented, and certainly the largest, A-share PIPE deal in China to have closed successfully since recent regulatory reform made strategic investments by foreign investors in Chinese listed companies possible.”

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