Privatisations

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CBLJ-July-August-20210708-Privatisations

CAR, China’s largest rental car service provider, was delisted from the HKEX by way of voluntary general offer and compulsory acquisition by MBK Partners, with a total consideration valued at about HKD8.5 billion. Davis Polk acted for CAR, while Fangda Partners and Sullivan & Cromwell represented MBK Partners and its financial advisers, respectively. The delisting followed fallout from an accounting scandal involving the company’s founder’s involvement in Luckin Coffee.

King & Wood Mallesons, Baker McKenzie and DeHeng Law Offices advised in the privatisation of China Machinery Engineering Corporation (CMEC) by way of merger by absorption, with cash consideration from the offeror, a wholly owned subsidiary of China National Machinery Industry Corporation (Sinomach). Sinomach is a state-owned enterprise wholly owned by the State Council, and is the controlling shareholder of CMEC.

China Customer Relations Centres, a Nasdaq-listed business process outsourcing service provider in China, went private by way of a merger with Taiying International. Hogan Lovells, Carey Olsen, Haneberg Hurlbert, Campbells, Commerce & Finance Law Offices, Harneys, and King & Wood Mallesons advised in the transaction.

Baker McKenzie and Linklaters participated in Chong Hing Bank’s HKD5.1 billion privatisation transaction by its parent, Yue Xiu Enterprises, by way of a scheme of arrangement. The proceeds will reportedly be used for the Hong Kong bank’s expansion on the mainland, with a view to upgrading itself as a national bank.