White & Case Advises on the Financing of a Third Chinese Company Take-Private This Year
Global law firm White & Case LLP has represented China Development Bank Hong Kong Branch (CDB) in a US$400 million financing for the take-private transaction of NASDAQ-listed Harbin Electric, Inc. The financing enabled Tech Full Electric Company Limited, an entity controlled by Harbin Electric founder and Chairman, Mr. Tianfu Yang, other management investors and Abax, to acquire the publicly-held shares of Harbin Electric.
This is the third financing of a Chinese company take-private that the Firm has advised on in recent months, with the previous transactions being Standard Chartered Bank's financing of the Chemspec take-private (NYSE) which closed in September, and CDB's financing of the China Security & Surveillance Technology take-private (NYSE and NASDAQ Dubai) which closed in October.
Harbin Electric, Inc is a developer and manufacturer of a wide variety of electric motors in the PRC. The transaction was completed on November 2, 2011.
Commenting on the deal, White & Case partner John Shum said: "There is a clear trend in management buyouts of US-listed Chinese companies at present and we are pleased to be involved on the financing side in a significant number that have closed to date. This China and US cross-border work plays very much to White & Case's strengths given the Firm’s platform in both countries and demonstrates our established relationships with financial institutions that are interested in this sector."
The deal was led by John Shum (Hong Kong) and Xiaoming Li (Beijing). They were assisted by David Johansen (New York) and lawyers, Frank Shu and Melody Ching (Hong Kong), Jianbin Wang and Tianren Liu (Beijing) and Elodie Gal (New York). Walkers (Partner Ashley Davies and associate Jennice Ng) acted as offshore counsel to CDB.
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