Baker McKenzie has acted for China International Capital Corporation Hong Kong Securities Limited (CICC), CMB International Capital Limited (CMBI), The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Silk Road International Capital Limited (Silk Road International) on Beijing Capital Land Ltd.'s H share rights issue. CICC, CMBI and HSBC were the joint global coordinators; CICC, CMBI, HSBC and Silk Road International were the placing agents; and CMBI, HSBC, Silk Road International and BCG Chinastar International Investment Limited were the underwriters of the H share rights issue.
Beijing Capital Land is a joint stock company incorporated in the PRC with limited liability, whose H shares are listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 2868). Beijing Capital Land is a leading large integrated real estate developer in the PRC, focusing primarily on developing the four main business streams of residential property development, outlets, urban core integrated complex and primary land development, complemented by innovative business areas such as high-tech industrial property developments, cultural and creative industrial property developments and rental housing.
The net proceeds of the H share rights issue, domestic share rights issue and non-H foreign share rights issue were estimated to be approximately RMB 2,492 million. Proceeds from the rights issue (after deduction of all relevant expenses) was expected to be used for the partial repayment of existing onshore and offshore interest-bearing indebtedness of Bejing Capital Land group.
The Baker McKenzie team was led by Partner Christina Lee, and was supported by Special Counsel Brian Wong, and Associates Bonnie Lau and Stephanie Mak, all based in Hong Kong.
Commenting on the deal, Christina Lee said: "We have been privileged to work with CICC, CMBI, HSBC and Silk Road International on this significant deal of Beijing Capital Land. This transaction was particularly interesting given the recent Hong Kong Listing Rules amendments relating to rights issue. We are very pleased to have been able to draw on our deep knowledge and experience in assisting industry conglomerates in cross-border fund-raising deals, and to see that the deal has come to fruition."
Baker McKenzie is one of the leading firms for complex transactions, providing strategic advice on deals involving the world’s leading financial institutions and multinational companies. The Firm regularly advises target companies, offerors, selling shareholders and financial advisers on the acquisition and disposal of companies listed on stock exchanges in key major financial centers, and issuers on their proposed listing and fund raising activities in different jurisdictions. With many of its lawyers enjoying established working relationships with local regulators in Hong Kong and other key markets, the Firm is able to guide clients through all stages of the process, providing valuable insight on regulatory developments that could impact the value and feasibility of cross-border transactions, as well as on ongoing compliance issues. The team also assists listed companies in the restructuring of shareholdings, use of stock as consideration, and block trades.