Mergers and restructuring trends in 2019


    Beginning the afternoon roundtable sessions of CBLJ Forum 2019, Tian Yuan Law Firm selected the topic “Hot issues in mergers and restructuring in 2019” and held a discussion revolving around the differences in the circumstances of state-owned enterprises (SOEs) and private enterprises in the real estate, environmental protection, and medical and health industries, with special corporate guests mainly from a domestic perspective.

    From left: Xiao Aihua, Dell Hao, Ren Yanling and Liu Yan

    Tian Yuan managing partner Liu Yan, partners Ren Yanling, Xiao Aihua and Song Juanjuan, participated, along with special corporate guests Dell Hao, the general manager of China Milestone Huanneng Investment Management, Peter Su, the general counsel at Tsinghua Tongfang, and Eric Xie, the general manager of the Legal Department at Golden Concord Holdings.

    Liu noted in her keynote speech that, against the background of the age of “tempering strictness with mercy”, and notwithstanding the China Securities Regulatory Commission paying close attention to enterprises, including those that have pledged high valuation, high goodwill and high performance, the review speed and pass rate for transactions in 2019 is projected to be much higher than the previous year.

    Song Juanjuan

    With respect to M&A in the domestic real estate sector, Ren Yanling said that real estate projects in such industries as education, medicine, senior care, culture and sports, in which many developers have begun to be involved, have increased the complexity of financing/investment in M&A projects.

    Xiao summarized the trend of SOEs acquiring private enterprises, which includes an increase in outstanding targets among private enterprises, a rise in acquisition prices from 2019 on, and more activity in the domestic market.

    With respect to trends in the medical and health sector, Song noted that the private establishment of hospitals was something the government was continuing to support, and this was showing signs of participation by groups, a move to the high end, and greater size of projects. This year is the 10th year of new medical reforms, and the establishment of private hospitals has passed the stage where everyone is rushing to get into the level of consolidation.

    The media coverage on the roundtable conference is organized based on shorthand transcripts. Any remarks by the guest speakers and scholars represent their own opinions, and not the opinions of the organizations to which they belong. Read the full report of the CBLJ Forum 2019 here.