Asia Deal Digest: December 5, 2013
Davis Polk & Wardwell is advising China Cinda Asset Management Co. Ltd. on its upcoming $2.5 billion initial public offering in Hong Kong. China Cinda, whose main business is acquiring nonperforming loans from Chinese banks, will use the bulk of the proceeds to grow China Cinda’s distressed asset portfolio, with the remainder to go toward launching new ancillary businesses and allocating capital to its existing subsidiaries. Hong Kong partner Bonnie Chan is leading the Davis Polk team on the deal, which also includes Hong Kong partner Antony Dapiran and Beijing partner Li He. Haiwen & Partners Beijing partner Liu Su is serving as Chinese counsel to China Cinda. Freshfields Bruckhaus Deringer is acting for joint global coordinators Merrill Lynch International, Goldman Sachs (Asia), UBS AG, BOCI Asia Ltd., Morgan Stanley Asia Ltd., Credit Suisse (Hong Kong) Ltd. and CCB International Capital Ltd. King & Wood Mallesons is advising the banks on Chinese law. [Read full story]
Herbert Smith Freehills has advised PetroChina Co. Ltd. on the purchase of a 25 percent stake in an Iraqi oil field from Exxon Mobil Corp. Though terms of the deal were not disclosed, it has been reported that Exxon’s 60 percent stake in Iraq’s West Qurna-1 oil field could be worth $3 billion, meaning that the interest bought by PetroChina would be worth $1.25 billion. Exxon is reducing its stake in West Qurna-1 from 60 percent to 25 percent. In addition to its sale to PetroChina, the U.S. oil giant is also selling a 10 percent stake to Indonesian state-owned oil and gas company PT Pertamina. Royal Dutch Shell plc. and the Oil Exploration Co. of Iraq will continue to hold 15 percent and 25 percent of the field, respectively. Hong Kong partner Hilary Lau, Doha partner Neil Brimson and London partner Isaac Zailer led the Herbert Smith Freehills team advising PetroChina. Exxon was represented by in-house counsel. [Read full story]
Reed Smith Richards Butler advised Chinese real estate developer Dalian Wanda Commercial Properties Co. Ltd. on an issue of $600 million in 4.875 percent guaranteed bonds on the Hong Kong Stock Exchange. Wanda will use the bulk of the funds raised to invest in projects in China and overseas. Reed Smith Shanghai partner Jay Yan and Hong Kong partners Ivy Lai, Jerry DiFiore and Delpha Ho advised the issuer, with Tian Yuan Law Firm acting as Chinese counsel and Appleby Hong Kong partner Judy Lee advising on British Virgin Islands law. Linklaters advised underwriters Barclays, Bank of America Merrill Lynch, Goldman Sachs, Hongkong and Shanghai Banking Corp. Ltd and UBS AG, as well as trustee Bank of New York Mellon, London Branch, on Hong Kong law. Jingtian & Gongcheng Beijing partner Ling Tezhi acted as Chinese counsel to the banks.
Davis Polk & Wardwell has represented Chinese milk manufacturer China Mengniu Dairy Co. Ltd. on a $500 million bond issue. Hong Kong partners William F. Barron and Paul Chow and Beijing partner Howard Zhang led the firm’s team advising the issuer. Commerce & Finance Law Offices acted as Chinese counsel, while Maples and Calder advised on Cayman Islands law. Linklaters represented joint lead managers Standard Chartered Bank, Deutsche Bank AG, The Hongkong and Shanghai Banking Corp. Ltd. and Barclays Bank PLC, with Global Law Office advising the banks on Chinese law.
Clifford Chance has advised Hebei-based steel producer Hengshi Mining Investments Ltd. on a $143 million initial public offering. The funds raised will be primarily used on Hengshi’s expansion plan. Beijing partner Jean Yu led Clifford Chance’s team on the deal, which also included Beijing partner Tim Wang and Shanghai partner Jean Thio. Commerce & Finance Law Offices acted as the issuer’s Chinese counsel, while Maples and Calder advised on Cayman Islands and British Virgin Islands law. Freshfields Bruckhaus Deringer Hong Kong partners Charles Ching and Calvin Lai advised underwriters Bank of America Merrill Lynch and Credit Suisse on Hong Kong and U.S. law, with Jingtian & Gongcheng acting as Chinese counsel.
Clifford Chance has advised Chinese state-owned automaker SAIC Motor Corp. Ltd. on a $77.5 million joint venture with Thai conglomerate Charoen Pokphand Group. SAIC will take a majority stake of 51 percent of the joint venture, named SAIC Motor–CP Co., with the remainder going to CP. The new company will begin producing motors in Thailand starting from 2014. Clifford Chance partners Andrew Matthews in Bangkok and Kelly Gregory in Shanghai led the firm’s team representing SAIC, while CP has primarily handled the transaction in-house.
Norton Rose Fulbright is advising Thailand’s PTT Exploration and Production Pcl. and Jakarta-based PT Pertamina on their proposed $1.3 billion acquisition of Indonesian offshore oil and gas assets held by Hess Corp. PTTEP and PT Pertamina, both state-owned companies, are planning to purchase from Hess a 75 percent stake in the Pangkah oil field in the East Java Sea and a 23 percent share of the Natuna Sea A offshore gas field near the border between Indonesia and Malaysia. The Natuna Sea purchase is expected to close by the end of December, with the Pangkah transaction following in the first quarter of next year. Singapore partner Ashley Wright is acting for Norton Rose Fulbright, with help from its Indonesian associate firm Susandarini and Partners. Freshfields Bruckhaus Deringer Singapore partner Gavin MacLaren is representing New York–based Hess on the deal. [Read full story]
Norton Rose Fulbright has advised Asia Infrastructure Fund Private Ltd., a unit of private equity firm CapAsia, on its $132 million sale of a 29.45 percent stake in Thai private toll road operator Don Muang Tollway Public Company Ltd. to FPM Infrastructure Holdings Ltd. The buyer is a joint venture between First Pacific Co. Ltd.—a Hong Kong-based investment holding company that also owns Indonesia’s largest food brand Indofood—and its Philippine subsidiary Metro Pacific Investment Corp. Bangkok partner Somboon Kitiyansub led the Norton Rose Fulbright team on the transaction. Bangkok firm Thanathip and Partners advised FPM.
Gilbert + Tobin is advising Australian travel insurer Cover-More Group Ltd. on a planned $476 million initial public offering. Cover-More will use more than half of the proceeds raised to acquire ASTIS, a holding company that owns several travel insurance brands. Sydney partner John Williamson-Noble is leading the firm’s representation. Allen & Overy Sydney partner Tony Sparks is advising underwriters Macquarie Capital (Australia) Ltd. and UBS AG, Australia Branch.
Allens and Chapman Tripp had the lead roles in New Zealand Government’s $300 million sale of a 20 percent stake in Air New Zealand. As with recent sales of shares in major power generation assets, the Air New Zealand transaction is part of a government plan to raise money through partial privatizations of state-owned companies. After the sale, the government’s majority stake in the airline will be reduced to 53 percent. Auckland partners Barry Brown and Tim Tubman led Chapman Tripp’s representation of the government, while Allens Melbourne partner Robert Pick acted as Australian counsel.
Gilbert + Tobin has advised Australian medical devices supplier LifeHealthcare on its $76.6 million initial public offering on the Australia Stock Exchange. Sydney partner John Williamson-Noble led the firm’s team on the deal.
Simpson Thacher & Bartlett and Amarchand & Mangaldas & Suresh A. Shroff & Co. acted for KKR & Co. in its $200 million acquisition of a minority stake in Indian Pharmaceutical firm Gland Pharma Ltd. Simpson Thacher Hong Kong partner Mark Pflug served as KKR’s international counsel, while Amarchand Mumbai managing partner Cyril Shroff and Bangalore partner Reeba Chacko co-led their firm’s team on the deal, which also included Bangalore partner Namrata Kolar and Mumbai partner Nisha Kaur Uberoi.
Amarchand & Mangaldas & Suresh A. Shroff & Co. has advised Macquarie Financial Services (Asia) Pte. on selling out to joint venture partner Religare Enterprises Ltd. its stake in Religare Macquarie Wealth Management Ltd. for an undisclosed amount. Religare was advised by Mumbai’s Vaish Associates.