Baker McKenzie recently advised Hengxing Gold Holding Company Limited ("Hengxing Gold") in relation to a take private proposal by Shandong Gold Mining Co., Ltd. ("Shandong Gold") by way of a scheme of arrangement. The scheme, which involves securities exchange offer of H shares of Shandong Gold as consideration for the cancellation of the shares of Hengxing Gold, has become effective. The shares of Hengxing Gold have been delisted from the Hong Kong Stock Exchange after trading hours of 1 February 2021.
Hengxing Gold is a company incorporated in the Cayman Islands and is principally engaged in gold mining and production. Shandong Gold is principally engaged in gold exploration, mining, processing, smelting and sales. It is listed on the Main Board of both the Shanghai and Hong Kong Stock Exchanges.
It is expected that, through the take private, gold resources can be consolidated and synergies can be achieved.
The Baker McKenzie team was led by Partner Christina Lee, with support from Special Counsel Betty Wong, and Associates Bonnie Lau and Adriana Chiu, all based in the Hong Kong office.
Commenting on the deal, Christina Lee said, "We are honoured to have been able to draw on our solid public M&A capabilities and assisted our client to successfully complete this strategically important transaction, which enables its shareholders to enjoy the more diversify and liquid listed platform of Shandong Gold."
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.