Eversheds Sutherland counselled DBS Bank on its acquisition financing in relation to the US$580 million (HK$4.5 billion) privatization of Springland International.
The privatization of Springland by the offeror, Octopus (China), was through a scheme arrangement under section 86 of the Companies Law of the Cayman Islands. DBS Asia Capital was the financial adviser to Octopus (China). The scheme went into effect in February 2020.
“Some investors may see privatizations as good opportunities to take over undervalued listed companies,” said Stephen Mok, senior partner at Eversheds and head of corporate, Asia. “The current state of the stock markets present a valuable opportunity to go down this route. I expect to see more activity in this area as the sentiment of the financial markets continues to be hampered by the current pandemic.”
Springland is a Chinese retail industry conglomerate that focuses on the investment and management of shopping malls and supermarket chains such as Huadi, Yaohan and T&T Supermarket, particularly in the Greater Yangtze River Delta region of China. It has branches across nearly 10 cities in Jiangsu and Anhui provinces, and has been listed on the main board of the Hong Kong Stock Exchange since 2010.
The Hong Kong-based team at Eversheds was led by partner Kingsley Ong, with of counsel Chuang Sin Joh and Simon Barrell, associates Polly Chiu and Toby Wai, and trainee Hinny Leung.