Baker McKenzie has advised China International Capital Corporation Hong Kong Securities Limited ("CICC") on the proposed privatization of China Machinery Engineering Corporation ("CMEC" or " Company", Stock Code: 1829) by way of merger by absorption. The cash consideration to be paid by the offeror is approximately HKD 3.4 billion. The merger agreement has become effective. The H shares of CMEC will be delisted from the Hong Kong Stock Exchange at 9 am on 6 August 2021.

CICC is the financial adviser to the offeror, a wholly-owned subsidiary of China National Machinery Industry Corporation ("SINOMACH"). SINOMACH is a state-owned enterprise wholly owned by the State Council of the PRC and is the controlling shareholder of CMEC.

CMEC is a joint stock limited company incorporated in the PRC and listed on the Main Board of the Hong Kong Stock Exchange. The Company is an international engineering contractor and service provider with a primary focus on engineering, procurement construction (EPC) projects and particular expertise in the power sector, capable of providing one-stop customized and integrated engineering contracting solutions and services. It also engages in trading, services, design consultation and other emerging sector business.

The Baker McKenzie team was led by Partners Christina Lee (Hong Kong) and Hang Wang (Beijing) of Baker McKenzie, with support from Special Counsel Betty Wong (Hong Kong), Senior Counsel Bing Han (Beijing) of FenXun Partners, and Associate Daisy Chen (Shanghai).

Commenting on the deal, Hang Wang said, "We are honored to have been able to draw on our strong public M&A and capital markets capabilities and assisted CICC and SINOMACH in successfully completing this strategically important transaction. We look forward to continuing to support CICC with their future transactional needs."

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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