Slaughter and May is advising on the US$1.1 billion Proposed Privatisation of China Agri-Industries by COFCO Hong Kong

Slaughter and May, Hong Kong, is advising COFCO (Hong Kong) Limited (COFCO HK) in its proposed privatisation of HK listed China Agri-Industries Holdings Limited (CAIH). The proposal will be implemented by way of a scheme of arrangement pursuant to the Companies Ordinance of Hong Kong. The scheme consideration will be paid in cash. Upon completion of the proposal, the COFCO group will hold 100% of the shares of CAIH and CAIH will apply for the withdrawal of the listing of its shares on the Hong Kong Stock Exchange.

The proposal was announced on 28 November 2019. The maximum amount of cash required to implement the proposal is approximately HK$9,167.6 million (US$1,175 million) (for up to 40.30% of the issued share capital of CAIH).

COFCO HK is an investment holding company incorporated in Hong Kong with limited liability and a direct wholly-owned subsidiary of COFCO Corporation, a state-owned company in the PRC with business interests in agricultural commodities trading, agricultural products processing, food and beverages, hotel management, real estate, logistics and financial services.

CAIH is a company incorporated in Hong Kong with limited liability, whose shares are listed on the Main Board of the Hong Kong Stock Exchange. CAIH, together with its subsidiaries, are a leading producer and supplier of processed agricultural products in the PRC. The principal businesses are oilseeds processing, rice processing and trading, wheat processing and brewing materials.