Baker McKenzie is advising China Evergrande New Energy Vehicle Group Limited (Evergrande Vehicle), a company listed on the Hong Kong Stock Exchange that specialises in developing and manufacturing new energy vehicles, in connection with its proposed introduction of a USD 500 million strategic investment by a NASDAQ-listed company for approximately 27.50% stake in Evergrande Vehicle.
The strategic investor is an eco-conscious mobility technology company bringing passenger-centric green premium mobility solutions to the world.
As part of China Evergrande Group's overall restructuring, Evergrande Vehicle also proposes to convert loans of approximately HKD 20 billion into new shares of Evergrande Vehicle, which will lower its level of indebtedness.
Earlier this year, Baker McKenzie advised Evergrande Vehicle on its disposal of its living projects and health management segment to China Evergrande Group which constituted a connected transaction and very substantial disposal of Evergrande Vehicle under the Hong Kong Listing Rules. Subsequently, Evergrande Vehicle’s trading suspension was lifted on 28 July 2023, after satisfying all the resumption guidance imposed on Evergrande Vehicle by the Hong Kong Stock Exchange.
Baker McKenzie advised Evergrande Vehicle on all of the above.
A cross-practice team of transactional specialists worked on this deal, led by Capital Markets Partner Christina Lee. Also involved in this transaction were Partners Lawrence Lee and Brian Wong. They were supported by Special Counsels William Cho and Bonnie Lau, Senior Associate Daisy Chen and Associates Serena Shao, Michael Chau, Charlotte Cao and International Associate Benjamin Cheung from the capital markets team; and Partner Simon Leung from the banking & finance team.
Commenting on the deal, Christina Lee said, “We are pleased to have played a role in every step of Evergrande Vehicle’s journey, including the restructuring of its living projects, resumption of trading on the Hong Kong Stock Exchange and most recently the introduction of USD 500 million strategic investment. The restructuring involves highly complex legal and regulatory issues, which demonstrates our capability in the capital markets and the public M&A sphere. We look forward to continuing to support our client in bringing this strategically important transaction to a close.”
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 fund-raising 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 fund raising under different schemes, including the Shanghai-London Stock Connect and the China-Switzerland Stock Connect.