Latham Advises Sinochem Hong Kong and China Jinmao on Placing of New Shares and Subscription of New Shares

Latham & Watkins advised Sinochem Hong Kong (Group) Company Limited (Sinochem Hong Kong) and China Jinmao Holdings Group Limited (China Jinmao) on a placing of new shares and subscription of new shares, respectively, with a total transaction size of HK$5.43 billion.

China Jinmao entered into a placing agreement with Goldman Sachs (Asia) L.L.C. (GS), pursuant to which China Jinmao appointed GS as the placing agent to procure placees to subscribe for 602,340,000 placing shares at the placing price of HK$5.70 per placing share. On the same day, China Jinmao also entered into a subscription agreement with Sinochem Hong Kong, pursuant to which Sinochem Hong Kong has conditionally agreed to subscribe for 349,450,000 subscription shares at the subscription price of HK$5.70 per subscription share.

China Jinmao is the real estate development business platform of the Sinochem Group, one of China’s central state-owned enterprises approved by the State-owned Assets Supervision and Administration Commission of the State Council, with the development and investment of real estate projects as one of its core businesses. Latham & Watkins has been advising China Jinmao since 2009, spanning a number of major corporate finance transactions, including rights issue, placement of shares, and bond issuance, as well as M&A transactions, privatization of a listed subsidiary and listing rules compliance.

Cathy Yeung, Global Vice Chair of Latham & Watkins’ Capital Markets Practice and Chair of the firm’s Greater China Practice, said: “We are delighted to be advising our long-term clients China Jinmao and Sinochem Group in these notable transactions. Our work advising on these transactions once again demonstrates Latham’s strength in capital markets in Greater China.”

Hong Kong partner Terris Tang added: “We are proud to be working on these high-profile transactions, while at the same time advising China Jinmao on a precedent-setting, first-ever proposed privatization of its Hong Kong listed business trust subsidiary. We are thrilled to assist our corporate clients on a spectrum of complicated matters that continue to shape the market.”

The Latham & Watkins team in Hong Kong was led by partner Cathy Yeung, together with partner Terris Tang, and associate Alex Lai.