Eversheds Sutherland Hong Kong advised DBS Bank on the acquisition financing in connection with the HK$4.5 billion privatisation of Springland International Holdings Limited (“Springland”).
Springland operates a number of department stores and supermarkets in Mainland China, in particular in the Greater Yangtze River Delta region. It has branches across nearly ten cities in Jiangsu and Anhui provinces. Springland listed on the Main Board of the Stock Exchange of Hong Kong in 2010 (HKSE: 1700).
The privatisation of Springland by the offeror, Octopus (China) Holdings Limited, was by way of a scheme of arrangement under section 86 of the Companies Law of the Cayman Islands. DBS Asia Capital Limited was the financial adviser to Octopus (China) Holdings Limited. The scheme became effective in February 2020.
Lead partner, Kingsley Ong, commented: “We were delighted to work with DBS on this notable transaction and to help Octopus (China) Holdings Limited in its successful acquisition and privatisation. Our team worked to a demanding timetable and the successful close is a credit to everyone’s hard work and dedication”.
Stephen Mok, Senior Partner and Head of Corporate, Asia, added: “We are very grateful for this opportunity to advise DBS on this transaction. There are many reasons why privatisations take place. Some controlling shareholders may want to restructure and recapitalise their business with a view to re-listing later on. Some investors may see privatisations as good opportunities to take over undervalued listed companies. The current state of the stock markets present a valuable opportunity to go down this route. I expect to see more activities in this area as the sentiment of the financial markets continues to be hampered by the current pandemic.”
The Hong Kong team was led by partner Kingsley Ong, with Of Counsel Sin Joh Chuang and Simon Barrell, Associates Polly Chiu and Toby Wai, and trainee Hinny Leung.