Baker McKenzie assisted China Ruyi Holdings Limited ("China Ruyi") (Stock code: 136) to raise HKD 3.875 billion (equivalent to approximately USD 500 million) through the placement of new shares.
The net proceeds from the share sale and placement will be used for the growth and expansion of the business of the group, including content production, purchasing drama scripts and copyrights, acquiring copyrights of films and TV programs, integrating upstream and downstream resources of the group's businesses, as well as for general working capital purposes.
The deal team, comprising lawyers from Baker McKenzie and FenXun, was led by Capital Markets Partners Christina Lee and Brian Wong, with support from Counsel Sophie Fu and Associate Anthea Yu.
Commenting on the deal, Christina said: "We are very pleased to have assisted China Ruyi on this important transaction, which has provided additional funding for our client’s future growth."
The placement of new shares is conducted through placing by a placing agent and subscriptions by certain investors. TFI Securities and Futures Limited acted as the placing agent for the placing tranche. One of the subscribers in the subscription tranche is a major life insurance company.
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 fundraising 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 fundraising under different schemes, including the Shanghai-London Stock Connect and the China-Switzerland Stock Connect.