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Eversheds Sutherland advised on Jinmao Hotel and Jinmao China privatisation

  • Hong Kong


    Hong Kong team advised DBS Asia Capital on HK$ 3.2 billion privatisation.

    International law firm, Eversheds Sutherland, advised DBS Asia Capital (DBSAC) as financial adviser to the offeror, China Jinmao Holdings Group Limited (China Jinmao), on the HK$ 3.2 billion (approximately US$ 412 million) privatisation of Jinmao Hotel and Jinmao (China) Hotel Investments and Management Limited (Jinmao China).

    Jinmao Hotel and Jinmao China are involved in property leasing, hotel operations and property management. They operate a portfolio of eight luxury hotels in Beijing, Sanya, Shanghai, Shenzhen and Lijiang together with the Jin Mao Tower, an 88-storey landmark in the Pudong district of Shanghai.

    Jinmao China and Jinmao Hotel constitute a Business Trust. The units in Jinmao Hotel are linked to the ordinary shares and stapled to the preference shares of Jinmao China as a stapled security (Share Stapled Units). These Share Stapled Units were listed on the Main Board of the Hong Kong Stock Exchange (Stock Exchange) in 2014.

    Only a small number of business trusts, including Jinmao Hotel, are listed on the Stock Exchange and Jinmao Hotel is now the first business trust to be privatised. The privatisation was undertaken by way of a Scheme of Arrangement under Section 86 of the Cayman Islands Companies Law and the trust deed constituting Jinmao Hotel. The scheme became effective on 28 September, 2020 and the listing of the Share Stapled Units was withdrawn on 5 October, 2020.

    DBSAC, a 100%-owned subsidiary of DBS Bank, is the investment banking arm of DBS Bank in Hong Kong.

    The Eversheds Sutherland team was led by Stephen Mok (partner) and Sin Joh Chuang (Of Counsel). They were supported by Alvin So and Angela Yuen (associate) and Darren Ho (trainee).

    Mr. Yip Wei Mun, Managing Director of DBSAC, commented:

    “‘We are grateful to the responsive and reliable Eversheds Sutherland team for their support on this complex deal. They were always available and willing to help with any issues that arose”.

    Stephen Mok, Senior Office Partner and Head of Corporate, Asia, added:

    “We are honoured to have advised DBSAC on this landmark transaction.

    Our team advised DBSAC earlier this year on the voluntary conditional cash offer share buy-back of Skyworth Group Limited.

    In March of this year we acted for DBS Bank, as lender to the offeror, on the HK$4.5 billion acquisition financing for the privatisation of Springland International Holdings.

    We look forward to working with the DBS Bank and DBSAC teams on their next transaction”.

    Latham & Watkins advised China Jinmao on Hong Kong law.

    Mayer Brown advised Jinmao Hotel and Jinmao China on Hong Kong law.

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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