Global law firm Baker McKenzie acted as Hong Kong and US law counsel to Yankuang Energy Group Company Limited on the closing of a HKD 4.96 billion placement of new H shares. This is the largest H share placement in 2024 so far, and the first H share placement of an “A+H” listed company following the promulgation of the current CSRC filing regime.

The net proceeds from the placement will be used mainly to repay the Group's debts and replenishment of general working capital purposes of the Group.

Yankuang Energy Group is principally engaged in mining, high-end chemicals and new materials, new energy, high-end equipment manufacturing, and intelligent logistics. The company produces thermal coals for large power plants, coking coal for metallurgical production, high-quality low-sulfur coal for pulverized coal injection, and chemical products such as methanol and acetic acid. The company's H shares and A shares are listed on the Hong Kong Stock Exchange and Shanghai Stock Exchanges, respectively. 

The deal team, comprising lawyers from Baker McKenzie and FenXun, was led by Partner Wang Hang of Baker McKenzie, with support from Chen Sheng of Baker McKenzie, and Rachel Wang and Xu Xiaoping of FenXun. 

Commenting on the deal, Wang Hang, who co-chairs Baker McKenzie's China Capital Markets Practice said, "We are very pleased to bring this transaction to fruition for our client in spite of the current challenging market conditions. This deal not only reinforces our long-term relationship with Yankuang Energy Group, it also highlights the strengths of our capital markets practice."

China International Capital Corporation Hong Kong Securities Limited acted as placing agent for Yankuang Energy Group in relation to the private placement.

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 fundraising 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 fundraising under different schemes, including the Shanghai-London Stock Connect and the China-Switzerland Stock Connect.
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