Slaughter and May is advising Honghua Group Limited (HKEx stock code 196) (Honghua) on its proposed issue of shares under specific mandates

Slaughter and May, Hong Kong, is advising Honghua on its proposed issue of shares under specific mandates to China Aerospace Science & Industry Corporation (CASIC) and Jianhong Capital Fund I L.P. (Jianhong), respectively, for an aggregate consideration of approximately HK$1.63 billion (US$210 million).  The transactions are subject to, among other things, Honghua shareholders’ approvals at an extraordinary general meeting which is expected to be held in February 2017.  An announcement regarding the signing of the subscription agreements was made by Honghua on 19 December 2016. 

If the transactions proceed to completion, CASIC will hold approximately 29.99% of the enlarged share capital of Honghua and become its largest shareholder. Jianhong will hold approximately 9.49% of the enlarged share capital of Honghua.

Honghua is one of the world's largest assemblers of onshore oil and gas drilling rigs.  It also engages in offshore engineering, oil exploration and provision of oil drilling engineering services.

CASIC is a Chinese state-owned enterprise and a leading developer of aerospace and defence technology, information technology and related equipment.

Jianhong is a limited partnership controlled by Beijing Jianhong Capital Management Co., Ltd, a Beijing-based asset management firm.

Benita Yu Partner