First share swap transaction approved under China's new M&A rules: Paul Hastings Advised

June 03, 2008 | BY

clpstaff &clp articles

Law firm succeeds in completing the complicated deal under the new rules

Poly (Hong Kong) Investments Limited (PIL), a company incorporated in Hong Kong and listed on the Hong Kong Stock Exchange, has acquired the entire equity interest in Shenzhen Poly Investments from China Poly Southern Group, a wholly owned subsidiary of China Poly Group.

The transaction is the first share swap deal approved by the Ministry of Commerce since the introduction of China's new merger and acquisition rules in 2006.

The Rmb1,390 million acquisition is a major transaction under the Hong Kong Stock Exchange Listing Rules requiring shareholders' approval. The deal was funded by PIL issuing and allotting new shares to Poly Southern Group.

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