In the latest of a number of convertible bond deals, Herbert Smith recently advised Maoye International, a Hong Kong-listed department store chain in China, on its HK$1.17 billion (US$150 million) Regulation S offering of five-year convertible bonds. The bonds will be listed on the Singapore Stock Exchange, and convertible into Hong Kong-listed shares.
Maoye operates 29 stores in 12 Chinese cities in the medium to high-end segment of the retail market. It has a leading market position in Shenzhen, Zhuhai, Chongqing and Chengdu, and a prominent presence in Shenyang, Wuxi, Tianjin and Changzhou.
The Herbert Smith corporate team was led by Tom Chau and Kevin Roy, assisted by Jason Sung, Melody Chen, Athena Young and Kong Jin.
Clifford Chance acted as counsel for JP Morgan, which was the sole bookrunner and arranger of this transaction. Herbert Smith had advised Goldman Sachs, HSBC, UBS and JP Morgan as joint bookrunners and joint lead managers on the HK$2.7 billion Hong Kong IPO and Regulation S/Rule 144A global offering of Maoye in 2008.
Walkers advised Maoye in relation to Cayman Islands law, while Commerce and Finance Law Offices advised it as to PRC law.
In a separate transaction, Herbert Smith also advised Goldman Sachs, as placing agent, on the sale of 187 million shares of China High Speed Transmission Equipment Group for HK$3.25 billion.
The deal comprised 187 million shares, of which 130 million were sold under a top-up placement and 57 million were sold by Fortune Apex, a company owned by China High Speed’s management.
Founded in 1969, China High Speed is one of the leading manufacturers of high-speed wind power gear transmission equipment in China. The company was listed on the Hong Kong Stock Exchange in 2007.
Herbert Smith’s Hong Kong corporate team advised on both the Hong Kong and US law aspects of the transaction. The US team was led by corporate partner John Moore and senior associate Siddhartha Sivaramakrishnan, assisted by Jackie Chen. Corporate partner Matt Emsley led the Hong Kong effort, together with senior associate Victor Ding and associate Bosco Yiu.
China High Speed was advised by Louis KY Pau & Company. Maples and Calder advised on matters of Cayman Islands law.
