Seven law firms represented the stakeholders on a merger between car insurance company CheChe Technology and blank-cheque enterprise Prime Impact, marking the latest Chinese variable interest entity (VIE) to pursue an overseas listing.
Following the completion of the de-SPAC process, the newly formed entity debuted on the Nasdaq with a valuation of USD841 million.
CheChe Technology was the first Chinese VIE to list in the US via a de-SPAC merger since China implemented new rules for filing overseas listings at the end of March.
In a de-SPAC deal, a special purpose acquisition company (SPAC) invests its capital into a private operating company, paving the way for the operating company to be publicly traded. On the successful completion of the merger, the operating company assumes the role of the surviving entity, while the SPAC is dissolved.
Wilson Sonsini advised CheChe Technology on US law, led by corporate partner Ouyang Dan with support from tax partner Myra Sutanto Shen.
Goodwin and Maples Group served as US and Cayman Islands counsel, respectively, for Prime Impact.
Zhong Lun Law Firm’s leading partner Bo Cheng advised Prime Impact on PRC law, with support from non-equity partner Dai Wen. Partners Allen Zhao, Meng Xianshi and Rachel Li assisted with issues involving insurance compliance, tax law and data compliance, respectively.
Jingtian & Gongcheng acted for one of the private investment in public equity (PIPE) investor’s in the deal, World Dynamic.
CheChe Technology was founded in Beijing in 2014 and received more than RMB1 billion (USD137 million) in venture capital from Tencent and other investment institutions as it embarked on its growth journey.