First PRC leveraged buyout closes in 2008
May 08, 2008 | BY
clpstaff &clp articles &CVC Asia Pacific has completed a US$248 million acquisition of Asia Dekor Group, a Singapore-listed flooring manufacturer with substantial operations in…
CVC Asia Pacific has completed a US$248 million acquisition of Asia Dekor Group, a Singapore-listed flooring manufacturer with substantial operations in the PRC.
Brett W. King, partner at Paul, Hastings, Janofsky & Walker who advised on this deal, said, “As the first leveraged buyout (LBO) that has been completed in the PRC this year, the deal demonstrates that there is still a market for LBOs in the Asia region.”
King said that the transaction was significant as it featured innovative intercreditor arrangements, including full onshore and offshore security packages.
“This arrangement avoids traditional structural subordination of the offshore facilities, a key issue for banks in PRC LBOs,” he said.
Paul, Hastings, Janofsky & Walker advised a consortium of financial arrangers comprised of Rabobank, ICBC, ING Bank, RBS and WestLB, while Clifford Chance advised CVC. WongPartnership acted as the lender's Singapore counsel, while Fangda Partners acted as the lender's PRC counsel. Maples and Calder acted as CVC's Caymen and BVI counsel, while Conyers acted as CVC's Bermuda counsel. The Paul Hastings team was led by banking and finance partner Brett W. King in Hong Kong and Juliet Taylor, Warrick Price, Daphne Nandwani, Marco Tam and James Ireland.
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