DEALS
Zhong Lun Advises OCBC Group on Acquisition of Commercial Building for PRC Headquarters from SIG Group
Zhong Lun Advises OCBC Group on Acquisition of Commercial Building for PRC Headquarters from SIG Group
An equity transfer agreement was entered into in February 2011 in Shanghai between Eastern Realty Company Limited, a Singapore-incorporated investment vehicle wholly owned by OCBC Group and Shanghai International Group Assets Management Co., Ltd. (“SIG AMC"), pursuant to which OCBC Group has acquired 100% equity in Shanghai International Group Plaza Co., Ltd. (the “Target Company"), a project company held by SIG AMC, through public bidding procedures of Shanghai United Assets and Equity Exchange and has also subscribed increased capital of the Target Company. Through the equity transaction, OCBC Group may via the Target Company own the commercial building (formerly named as SIG Plaza) located in Lujiazui, Pudong New District, Shanghai (“Property") under the title of the Target Company and will relocate its PRC headquarters and offices into the Property with a proposed new name as OCBC Tower.
Ever since the opening of its first branch office in Xiamen City in 1925, OCBC Group has been consecutively maintaining its business operations in China. OCBC Group was approved to establish in China a wholly owned and locally incorporated subsidiary bank as OCBC Bank (China) Limited in 2007. The said transaction may have key strategic significance to OCBC Group for boosting its business development and expanding its business operations in China.
Acting as an attorney and coordinator of the transaction, Zhong Lun has provided full range legal services to OCBC Group in connection with the transaction. Besides, Zhong Lun advised Eastern Realty Company Limited and the Target Company with respect to settlement of the related onshore entrustment financing granted by SIG AMC to the Target Company. The transaction also involved certain widely discussed and controversial legal topics such as the stated-owned assets acquisition, acquisition of real estate company by foreign investment, establishment of the headquarters of the foreign bank and project financing.
The legal team consisting of Shirley Lu Jing, Andy Li Li and Jack Zhai Ke from Zhong Lun Shanghai Office, has provided full range legal services for OCBC Group and Eastern Realty Company Limited. The team members also directly communicated with officials from the Ministry of Commerce on behalf of the clients.
