Paul Hastings Advising China Everbright in Sale of its Brokerage Business
Hong Kong (April 27, 2011) Paul, Hastings, Janofsky & Walker, a leading global law firm, announced today that it is advising China Everbright Limited (China Everbright), a financial services company whose shares are listed on the Hong Kong Stock Exchange, in the disposal of 51% of the share capital of Everbright Securities (International) Limited to Everbright Securities Company Limited (Everbright Securities), a financial services company whose shares are listed on the Shanghai Stock Exchange, for a consideration of approximately US$114 million.
The consideration payable by China Everbright was reached with reference to a range of price-to-earnings (P/E) multiples of the companies selected from among the listed companies in Hong Kong with businesses similar to those of Everbright Securities (International) Limited and the net profit of Everbright Securities (International) Limited for the year ended 31 December 2010.
Following the disposal, China Everbright and Everbright Securities will become joint venture partners, thus allowing China Everbright to make use of the extensive network of Everbright Securities in the PRC to further develop its securities, futures, forex and bullion brokerage services, wealth management services, investment banking and research businesses in Hong Kong.
Paul, Hastings, Janofsky & Walker LLP is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.