DEALS
Zhong Lun Represents Jinke Property in its A+H Cross-capital Market Share Transaction and Supporting Financing
Zhong Lun Represents Jinke Property in its A+H Cross-capital Market Share Transaction and Supporting Financing
Jinke Smart Service Group Co., Ltd. (“Jinke Service", stock code: 09666.HK), a majority-owned subsidiary of Jinke Property Group Co., Ltd. (“Jinke Property", a company listed on the Shenzhen Stock Exchange under the stock code 000656.SZ) has recently introduced a well-known investment fund as its strategic investor. This has not only brought in the second largest shareholder of Jinke Service, thus securing for it an important long-term capital source, but also increased the cash flow of Jinke Property by more than RMB 4 billion. The final scheme of this project involves, among others, cross-border share transfer, cross-border financing and guarantee, and corporate governance and information disclosure of domestic and overseas listed companies. This is a pioneering case in domestic “real estate + service" listed companies’ share transaction and supporting financing across A-share and H-share capital markets.
Despite the tight schedule and complex deal structure, Zhong Lun provided Jinke Property with comprehensive legal services, ranging from design of transaction structure, review and revision of transaction documents and negotiation to legal consultation and transaction closing assistance. Zhong Lun team was led by partner Li Xiong, with non-equity partner Zhuo Wang and associate Jie Jiang as key members and Jie Gu and Xiao Huang as supporting staff, all from the firm’s Chongqing office.
Jinke Property, founded in 1998, is a famous domestic real estate company sitting on the 15th spot in the overall rating in China’s real estate industry and has been ranked among the “Top 500 Chinese Companies", “Top 500 Chinese Private Companies" and “10 Most Valuable Chinese Real Estate Brands" for many consecutive years. Jinke Service is among China’s top 10 comprehensive service groups and No. 1 in Southwest China after more than 20 years’ development. Jinke Service has also been ranked among China’s top 10 property service companies in terms of comprehensive strength and held the first place in market share in central and western China, both for six years in a row. It has also occupied the first place in the comprehensive strength of property service in Chongqing and Wuxi for many years in succession.
After this strategic investment, Jinke Property has officially reached a strategic partnership with the strategic investor. They will carry out in-depth cooperation in urban renewal, commercial consumption, smart services and other fields in line with China’s industrial policy to fuel the company’s sustainable development.
