November 08, 2019
On November 1, 2019, Haier Electronics Group Co., Ltd. (“Haier”) and Ozner Water International Holding Limited (“Ozner”) entered into a subscription agreement pursuant to which Haier will invest HK$1.65 billion in Ozner through subscribing 1,599,248,963 new Ozner Shares at a price of HK$1.03 per share. As noted in the joint announcement of the parties, the closing of the subscription is subject to Ozner shareholders’ approval and the granting of a whitewash waiver by the Securities and Future Commission of Hong Kong as well as the Ozner shareholders. After closing, Haier is expected to become the largest shareholder of Ozner. The cooperation between the two groups would enable both to benefit from each other’s competitive advantages in relation to the commercial water purification business.
Given the potential synergy between Haier and Ozner, it is expected that the two groups will collaborate closely in various areas including product development, research and development, distribution, supply chain management, services and investment management.
Latham & Watkins LLP advised Haier on the transaction with a team led by Hong Kong partners Frank Sun and Terris Tang with Hong Kong associates Bonnie Tse, Jonathan Leung and Beijing associate Jason Zhao.