The Baker McKenzie FenXun (FTZ) Joint Operation has advised Alpha Luck Industrial Limited and AKM Meadville Electronics (Xiamen) Co. Ltd. ("Joint Offerors") in relation to the privatization of AKM Industrial Company Limited (Stock Code: 1639) by way of scheme of arrangement under Section 673 of the Companies Ordinance under Hong Kong law. The cash consideration paid by the Joint Offerors is approximately HKD 1.8 billion. The listing of the shares of AKM Industrial Company Limited has been withdrawn from the Hong Kong Stock Exchange today.
Alpha Luck is an investment holding company. AKM Meadville is a company principally engaged in provision of high-density interconnected printed circuit boards (rigid boards, flexible boards and rigid flexible boards), packaging substrates and solution services.
AKM Industrial is principally engaged in the production of flexible circuits and related module products.
The deal team, which comprised of lawyers from both global law firm Baker McKenzie and Chinese law firm FenXun, was led by partners Hang Wang (Beijing) and Christina Lee (Hong Kong) of Baker McKenzie, with support from partner Brian Wong (Hong Kong), and Senior Counsel Yolanda Zheng from the International Capital Markets team of FenXun (Beijing). They were assisted by Special Counsel Bonnie Lau (Hong Kong), associates Ray Chan and Oliver He of Baker McKenzie and Jing Beihai of FenXun (Beijing).
"We are very pleased to be able to bring our strong public M&A and capital markets capabilities to the table and assist our clients to successfully complete the transaction," Hang Wang said. "As we head into a period of global economic uncertainty, we expect to see more listed companies to go private amid the low market valuation of the stock markets and the increasing difficulty to raise funds. Baker McKenzie has a strong track record in advising our clients in China on privatization and delisting of Hong Kong listed companies. Our team of experts based in our Beijing, Shanghai and Hong Kong offices are well positioned to provide on-the-ground and high quality services to our clients in need."
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. Moreover, the team has extensive experience in advising clients on cross-border capital fund raising under different schemes, including the Shanghai-London Stock Connect and the China-Switzerland Stock Connect.
FenXun regularly represents underwriters and issuers in debt and equity offerings on China's stock exchanges, and advises on bond and debenture issues, mutual fund issues and securities laws in China. The Firm also has deep experience in working with H-share companies and handling red chip stocks, as well as assisting in arranging Hong Kong and global offerings on the New York Stock Exchange, NASDAQ and other exchanges, and offerings under SEC Rule 144a.