Alliance between Chinese and Australian law firm

Mallesons Stephen Jaques and King & Wood have combined their firms to create King & Wood Mallesons, a new legal powerhouse centred in Asia. Effective from 1 March 2012, this will be the first verein alliance law firm of its type in the world, combining a Chinese and Western law firm. With over 380 partners and 1800 lawyers it will be the largest law firm in Asia and the largest firm in the world headquartered outside of the US and UK. King & Wood Chairman Wang Junfeng will be the chairman of the combined firm. Stuart Fuller, who succeeded Robert Milliner as chief executive partner of Mallesons on 1 January 2012, will become global managing partner of the combined firm based in Hong Kong.

First issuance of dim sum bonds by a PRC corporate

Allen & Overy is acting for Chinese state-owned steel manufacturer Baosteel Group Corp on a US$567 million (HK$4.41 billion) Hong Kong issue of bonds denominated in the Chinese currency, RMB. The steelmaker is the first mainland Chinese non-financial company to sell dim sum bonds. China Development Bank became the first dim sum bond issuer of any type in 2007. In September 2011, L’Air Liquide SA, a French producer of cryogenic and medical gases, issued RMB bonds worth US$400 million (HK$3.11 billion) on the Hong Kong Stock Exchange. Allen & Overy’s team on the issue is led by partner Walter Son.

Hong Kong jeweller IPO

Freshfields Bruckhaus Deringer has advised Hong Kong jewellery retailer Chow Tai Fook Jewellery Group Ltd on a US$2 billion (HK$15.56 billion) initial public offering, which was the third biggest listing in Hong Kong last year. The jewellery retailer is controlled by billionaire Cheng Yu Tung, who also chairs property company New World Development Co Ltd. Chow Tai Fook, which means ‘prosperity’ in Cantonese, has more than 1500 outlets, mostly in Hong Kong and mainland China. It will use the proceeds to purchase raw materials and research and development equipment, repay loans, buy real estate, build an office building in Shenzhen, and renovate stores. Freshfields’s team was led by partners Teresa Ko, Grace Huang and Calvin Lai.

Community fund development

Mayer Brown JSM has acted for Yihai Capital Partners Ltd, a specialised real estate investment and asset management company wholly-owned by Yihai Group (Holdings) Ltd, which has announced the first closing for its Yihai China Community Development Fund I, LP. Yihai Group (Holdings) Ltd (YGHL) is a privately held group that has been active in China since 1990 and has been operating schools in China since 1998. YGHL was founded by Ms Linda Wong, an entrepreneur and educator with a passion for charity work. YGHL has four main business units: real estate development; education; property management; and fitness and spa, and employs over 1600 staff. The Fund is a real estate development fund that will invest in mid-market residential development opportunities anchored by educational facilities in China. The Fund’s target size is US$250 million (HK$1.94 billion) and was marketed globally by Citi Private Bank as placement agent. The Mayer Brown JSM team was led by corporate partners Phill Smith and Yong Ren.

Energy company IPO

Latham & Watkins has represented the underwriters, Goldman Sachs (Asia) LLC, UBS AG, BOCI Asia Ltd, Barclays Bank PLC, Daiwa Capital Markets HK Ltd, China Merchants Securities (HK) Co Ltd and ABCI Securities Co Ltd, in connection with Beijing Jingneng Clean Energy Co Ltd’s initial public offering of 1,135,420,000 H-shares listed on the Hong Kong Stock Exchange, including its international offering (144A/Reg S) of 1,021,876,000 H shares and Hong Kong public offering of 113,544,000 H-shares. Beijing Jingneng Clean Energy is the largest gas-fired power provider in Beijing and a leading wind power operator in China. The offering raised approximately HK$1.9 billion (US$244.3 million) gross proceeds after pricing its offering at HK$1.67 (US$0.21) per H-share. The Latham team included partners Cathy Yeung and Michael Liu, counsel Olivia Wong and associates Stephen Chan, Felix Miao and Dominik Sklenar.

Establishment of unit trust fund

Maples and Calder has advised Cape Asset Management Ltd as to Cayman Islands law on the establishment of the Cape Asia China Opportunity Fund, a Cayman Islands unit trust (the ‘Fund’). The investment objective of the Fund is to maximise capital gains by investing in Asian equities, offering investors exposure to the growth potential offered by Asian businesses. Cape Asset Management Ltd is a Hong Kong-based investment manager and is a subsidiary of The Seven International, an investment holding company incorporated in Labuan, Malaysia and the holding company of The Seven Group. The Maples and Calder team was led by partner Spencer Privett, and assisted by associate Terence Ho.