Goodwin Procter client Shui On Company Limited (SOCL), a company owned by a Hong Kong and China property mogul Vincent Lo, recently closed a HK$650 million (approximately US$83 million) voluntary unconditional partial cash offer to acquire 54 million shares of Shui On Construction and Materials Limited (SOCAM) and options for up to 4,317,121 underlying shares. Through completion of the offer, SOCL increased its controlling stake in SOCAM from 37.59% to 48.62%.
SOCAM, listed on the Main Board of The Stock Exchange of Hong Kong Limited, is a member of the Shui On Group, one of the largest conglomerates in Hong Kong. Its subsidiaries are principally engaged in property development, asset management, cement production and construction businesses in the PRC, Hong Kong and Macau.
“In executing this transaction, SOCL had to overcome a number of highly complicated issues with the Securities and Futures Commission, and we valued highly the contribution and competence of the Goodwin team,” said Frankie Wong, Managing Director of SOCL.
“There have only been two or three partial offers successfully completed in the HK market, as many do not survive review by the SFC,” said Loretta Lau, a Goodwin Procter corporate finance partner resident in the firm’s Hong Kong office. “Because of the rarity of these deals, our team had to work out a number of complex issues with the SFC that seldom arise, so we were very pleased to be able to help Shui On Company complete its offer.”
Lo is among the first investors to enter the PRC property market with the prominent real estate and tourism development of Xintiandi in Shanghai. He also owns Shui On Land Limited, a Hong Kong listed company which is engaged in large-scale city-core development projects and integrated residential development projects in major cities in China, including Shanghai, Wuhan, Chongqing, Hangzhou, Dalian and Foshan.
The Goodwin deal team advising SOCL was led by Lau.
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