DEALS
Zhong Lun Advises Yunnan Copper on Issuing New Shares to Purchase Assets and Raise Supporting Funds
Zhong Lun Advises Yunnan Copper on Issuing New Shares to Purchase Assets and Raise Supporting Funds
Recently, Yunnan Copper Co., Ltd. (stock code: 000878.SZ, "Yunnan Copper" or "Listed Company") received the registration approval issued by the China Securities Regulatory Commission for issuing new shares to purchase assets and raise supporting funds (the "Transaction"). Yunnan Copper has completed the transfer of the target assets.
In the Transaction, Yunnan Copper purchased a 40% equity interest in Liangshan Mining Co., Ltd. ("Liangshan Mining") from Yunnan Copper (Group) Co., Ltd. ("Yunnan Copper Group") through a share issuance. The total consideration for this acquisition was approximately CNY 2.3 billion. In addition, Yunnan Copper proposed to raise supporting funds of CNY 1.5 billion through a private placement of shares to Aluminum Corporation of China ("Chinalco") and China Copper Co., Ltd. ("China Copper"), with Chinalco subscribing for CNY 1 billion and China Copper subscribing for CNY 500 million. Through the Transaction, Yunnan Copper increases its direct stake in Liangshan Mining from 20% to 60% and gains controlling interest. This Transaction is designed to facilitate the consolidation of high-quality industrial resources and optimize the capital structure of Yunnan Copper, thereby enhancing the Listed Company's core competitiveness and market position, while driving its high-quality development.
Yunnan Copper’s primary business covers copper exploration, mining, smelting, extraction and processing of precious and scattered metals, sulfur chemicals, and trade. It is a significant production base for copper, gold, silver, and sulfur chemicals in China, and serves as the sole listed company and core platform for the copper industry under Chinalco and China Copper. Liangshan Mining specializes in the mining, dressing, and smelting of copper metal mines, with products covering copper, iron, sulfuric acid, etc. It possesses high-quality copper resources such as the Lala Copper Mine and Hongnipo Copper Mine.
Zhong Lun Law Firm acted as legal counsel to Yunnan Copper in the Transaction, providing end-to-end legal services covering transaction structuring, documentation, legal due diligence, regulatory filings, public disclosures, and closing. The signing lawyers for this Transaction were partner Shiwei Zhang and associate Shuo Li. The project team also included non-equity partner Siqi Lu and Haowei Feng, among others. Partner Zhanghui Hou and associate Linge Zhao provided legal consulting related to the merger control filing for this Transaction.
