Freshfields advises CITIC Pacific on US$36.5bn asset injection and US$6.8bn share placement

International law firm Freshfields Bruckhaus Deringer has advised CITIC Pacific on its acquisition of all of the issued share capital of CITIC Limited from mainland-based CITIC Group and its subsequent share placement to 27 professional and international investors for a total amount of US$6.8bn to settle part of the consideration of the acquisition.

The US$36.5bn asset injection was initially announced on the Hong Kong Stock Exchange in April, and has been completed together with the share placement this week.

Through this deal, CITIC Pacific has acquired substantially all of CITIC Group’s portfolio of businesses and in turn, CITIC Pacific has issued shares to CITIC Group and to independent investors through three share placements.

Freshfields is the exclusive international legal advisor involved in the transaction, advising CITIC Pacific.

China Chairman of Freshfields, Teresa Ko, said that the deal was an historic moment for all Chinese state-owned enterprises (SOEs).

Teresa commented: ‘CITIC Group’s decision to seek additional investment through the Hong Kong exchange is a very strong vote of confidence in the long-term future of our market. This is a critical step in the evolution of Chinese SOEs and Hong Kong’s equities market alike. Global investors will now have the opportunity to directly share in the prosperity of one of China’s most prestigious and well-known companies.’

In addition to Teresa Ko, the Freshfields team was led by corporate partner Richard Wang in Beijing and US corporate partner Calvin Lai in Hong Kong.

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