Paul Hastings Advises CIMC Enric on US$543 million Expansion of its Business through Acquisitions in China And Europe
Hong Kong (August 18, 2009) Paul, Hastings, Janofsky & Walker, a leading global law firm, announced today that it has advised CIMC Enric (Enric) on the expansion of its transportation, storage and equipment business through acquisitions in China and Europe, totalling US$543 million. The transaction was successfully completed on August 14, 2009. As a result of these moves, Enric has become one of the largest international manufacturers and service providers in respect of a wide spectrum of transportation, storage and processing equipment widely used in the energy, chemical and liquid food industries.
The deal is particularly significant as it is the first transaction of its kind within the transportation, storage and processing equipment manufacturing industry. With major acquisitions in China, the Netherlands, Denmark and Belgium, the transaction will also result in Enric becoming the global market leader in this sector.
The transaction involved highly complicated legal and regulatory issues, including a reverse takeover, a very substantial acquisition and connected transaction for Enric under the Hong Kong Listing Rules, as well as requiring a whitewash waiver application under the Hong Kong Takeovers Code, and a new listing application under the Hong Kong Listing Rules to maintain the listed company status of Enric on the Hong Kong Stock Exchange.
Raymond Li, a partner in Paul Hastings Hong Kong office, commented: We are delighted to have advised Enric on this significant transaction. This deal reaffirms the Paul Hastings position as a leader in outbound investment and M&A deals for Asian companies investing in the United States and Europe. In the past year, the firm has advised several companies from China, Korea, Japan and India on their outbound investments, and given current market conditions we see this as a significant and positive investment trend.
Commenting on the legal challenges faced in the Enric deal, Phoebus Chu, a Paul Hastings corporate partner, commented: This transaction required complex and technical advice, given that the legal issues involved the laws of a number of jurisdictions and the regulatory issues involved significant parts of the rules under the Hong Kong Takeovers Code and the Hong Kong Listing Rules.
The Paul Hastings team was led by Raymond Li and Phoebus Chu, assisted by Jenny Lau, Ling Ling and Beverly Hu Koo.
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