Slaughter and May is advising China International Capital Corporation Hong Kong Securities Limited (CICC) as financial adviser to Shandong Weiqiao Textile Technology Company Limited (Offeror) on the privatisation of Weiqiao Textile Company Limited (Weiqiao Textile), a company incorporated in the PRC with its H shares listed on the Hong Kong Stock Exchange. The privatisation will be implemented by way of merger by absorption.
The privatisation proposal was announced on 4 December 2023. The aggregate cash cancellation prices for the H Shares and Domestic Shares are approximately HK$1,448 million (US$185 million) and RMB73 million (US$10 million) respectively. The remaining Domestic Shares held by the Offeror’s parent will be cancelled in consideration for the issuance of registered capital in the Offeror.
The privatisation will be subject to pre-conditions relating to regulatory approvals and to conditions which include shareholder approvals, and will be financed by internal cash resources and/or external debt financing.
Weiqiao Textile is a joint stock limited company incorporated in the PRC, and is primarily engaged in the production, sales and distribution of cotton yarn, grey fabric and denim as well as electricity and steam business.
The Offeror is a company newly incorporated in the PRC for the purpose of this Merger. It is wholly owned by Weiqiao Chuangye, which is principally engaged in the processing and sales of cotton, lint cotton, cotton seed oil, fabrics, cotton yarn and print cloth, retail and distribution of cloth and supply of industrial water.
Benita Yu, lead partner for the transaction comments: “We are pleased to have the opportunity to work with CICC and Weiqiao Textile on this take private transaction and will strive towards its successful completion.”
Carolyn Stannard / Trainee