The first backdoor listing on the Growth Enterprises Market of Shenzhen Stock Exchange since changes in the rules on reverse takeovers saw Zhong Lun Law firm advising.
Zhong Lun represented listed food packaging company Precise and database centre Runze Science Technology Development in an RMB19.6 billion (USD2.94 billion) restructuring plan.
Precise completed a RMB13.6 billion reverse takeover by Runze with the sale of all assets and debts valued at RMB602 million in total.
Runze exchanged its shares with those of Precise and at that stage effectively became a publicly traded company.
The application for the reverse takeover was the first after the China Securities Regulatory Commission amended rules in 2019 to allow backdoor listing on the Growth Enterprises Market. The restructuring also involved an additional RMB4.7 billion in financing.
Partners Tang Zhoujun and Xiong Li led the deal along with non-equity partners Wu Lintao and Like Li as signatory attorneys. Team members also included non-equity partner Wang Zhuo and associate Huang Qian. Declarations were managed by partners Scott Yu, Maria Hou and associate Zhao Linge.