Baker McKenzie is acting for AVIC International Holding Corporation ("AVIC International") on its proposed privatization of AVIC International Holdings Limited ("AVIC International Holdings", Stock Code: 161). The privatization comprises a voluntary H share general offer ("H Share Offer") and a subsequent merger by absorption of the target company. AVIC International is the offeror of the H Share Offer and China International Capital Corporation Hong Kong Securities Limited is its exclusive financial adviser.The H Share Offer became unconditional in all respects on 6 March 2020, and the delisting of the H Shares of AVIC International Holdings will take place in due course.

AVIC Internatonal Holdings 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. AVIC International is a state-owned enterprise in the PRC and the controlling shareholder of AVIC International Holdings.

This deal is the second privatization of an H share-listed company involving an H share offer that has become unconditional in the market, since the amendments to the Hong Kong Takeovers Code having come into effect from July 2018. Specifically, it is the first in the market involving a voluntary general offer and a merger by absorption in a privatization of an H share-listed company that has been declared unconditional, since the aforementioned amendments to the Hong Kong Takeovers Code took effect.

The Baker McKenzie team is led by partners Christina Lee (Hong Kong) and Wang Hang (Beijing), and is supported by special counsel Betty Wong (Hong Kong), counsel Yolanda Zheng (Baker McKenzie FenXun, Beijing), and associate Hu Xiaoyang (Shanghai).

Commenting on the deal, Wang Hang said: "It is our privilege to work with AVIC International on this significant deal involving the privatization of AVIC International Holdings. This transaction is particularly challenging from regulatory and practice aspects, and may impact on and be of reference value for future privatizations of H share-listed companies. We are very pleased to have been able to draw on our deep knowledge and experience and work with our client and other intermediates in finding solutions. We look forward to a smooth completion."

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, as well as 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 insights 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.

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