Slaughter and May is advising CICC - privatisation offer by Profit Strong Investments Limited and Max Glory Limited for Dongpeng Holdings Company Limited

Slaughter and May, Hong Kong, is advising China International Capital Corporation Hong Kong Securities Limited (CICC) in its capacity as financial adviser and as lender of a certain funds facility in relation to the privatisation offer by Profit Strong Investments Limited and Max Glory Limited for Dongpeng Holdings Company Limited (Dongpeng) to be implemented by way of a pre-conditional scheme of arrangement (the Scheme). The pre-conditional offer was announced on 18 February 2016.

Dongpeng is a Cayman-incorporated company listed on the Hong Kong Stock Exchange (Stock Code: 3386) which is principally engaged in the design, development, production, marketing and sale of a wide variety of ceramic tile products and bathroom products. Profit Strong Investments Limited is a BVI-incorporated investment holding company which is wholly owned by Mr. He Xinming. Max Glory Limited is incorporated in the Cayman Islands and is effectively controlled by Sequoia RMB SP Fund.

Subject to the satisfaction of the pre-condition, the maximum consideration payable by the joint offerors under the Scheme will be HK$1,509,904,620.00 (approximately US$194m). The pre-condition is that Sequoia RMB SP Fund obtains the relevant overseas investment approvals in the PRC in respect of its investment through the Scheme. It must be fulfilled within 180 days of 18 February 2016 or the proposal for the privatisation of Dongpeng will not be made.

Peter Brien Partner
Rahul Mehta Associate