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COSCO SHIPPING Development to Buy Back A-Shares and H-Shares for up to RMB300 Million

February 01, 2019

Hong Kong - Paul Hastings, a leading global law firm, announced today that the firm is advising COSCO SHIPPING Development Co., Ltd. (“COSCO SHIPPING Development”) on its proposed repurchase of A shares and H shares in the aggregate amount of not less than RMB200 million and up to RMB300 million. Hong Kong and Shanghai-listed COSCO SHIPPING Development is principally engaged in shipping and industry-related leasing businesses, manufacturing of containers and provision of investment and financial services.

COSCO SHIPPING Development proposes to repurchase A shares and H shares on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively. The A shares to be repurchased will be used for future implementation of an A share equity incentive scheme, with a view to improving the long-term incentive system and promoting the sustainable development of COSCO SHIPPING Development.

The proposed share repurchase, particularly when coupled with the proposed non-public issuance of A shares of COSCO SHIPPING Development, involved various legal frameworks and concepts in the PRC and Hong Kong, and was subject to several complex legal issues under the Hong Kong Takeovers Code, the Hong Kong Listing Rules and the Shanghai Listing Rules. The Paul Hastings team took the lead in the negotiations with and submissions to the Hong Kong Stock Exchange and the Securities and Futures Commission.

Paul Hastings previously represented COSCO SHIPPING Development in its proposed non-public issuance of A shares to not more than 10 specific target subscribers, including COSCO SHIPPING Development’s indirect controlling shareholder, China COSCO Shipping Corporation Limited, raising gross proceeds of up to RMB8.6 billion. In addition, Paul Hastings also represented COSCO SHIPPING Development in the merger between CS Finance, a non-wholly owned subsidiary of COSCO SHIPPING Development, and COSCO Finance in 2018.

The Paul Hastings team was led by Raymond Li, global partner and Chair of Greater China practice, and of counsel Bonnie Kong, with support from associate Andy Tam, trainee solicitor Phoebe Chow and paralegal Olivia Zhai.

At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.