DEALS

Zhonglun Advised on Tong Dai’s Trade Sale to Chunhui

Release time：2016-02-14 Voice Announcements

On February 4, 2016, Guangdong Kaiping Chunhui Co., Ltd. (“Chunhui", 000976) announced that it had completed the acquisition of 100% shares in Tong Dai Control (Hong Kong) Limited (“Tong Dai HK") from Tong Dai Group Limited (“Tong Dai Group"). The transaction was valued at approximately RMB3.3 billion and was financed by Chunhui’s private placement in the A-share market, which was approved by CSRC’s Issuance Examination Committee on November 22, 2015. Tong Dai HK mainly owns 100% equity interest in Qingdao Asia Tong Dai Railway Equipment Co., Ltd., which engages in manufacturing rail transit equipment.

The legal team from Zhong Lun Law Firm, led by Anthony Zhao, represented Tong Dai Group and its shareholders in the transaction, and offered a full spectrum of PRC legal services. Sammy Hsia, Shirley Xiang, Ada Jiang and Zhao Li handled the legal matters in relation to the trade sale and A-share market; Catherine Chen, Joseph Liu and Chen Beibei handled the legal matters in relation to onshore fund formation; and Michael Gu, Qing Ren and Mark Gao contributed expertise in their respective areas.

This transaction adopted an innovative deal structure of “offshore cash acquisition, onshore stock subscription", under which while the original investments could be cashed out offshore, the relevant parties could, through their formed onshore funds, participate in the private placement and share the future capital premium in the A-share market.

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Zhonglun Advised on Tong Dai’s Trade Sale to Chunhui