BorsodChem, previously owned by Permira, completed a restructuring of its senior and mezzanine debts in June 2010. Under the restructuring plan, Wanhua acquired a 38 percent stake in BorsodChem and agreed to provide working capital facility to BorsodChem. Wanhua subsequently exercised its option to acquire a further 58 percent stake and assisted BorsodChem in raising a EUR900 million senior financing from Bank of China, Bank of Communications and Industrial and Commercial Bank of China.
Joseph Tse, Senior Partner, Greater China, who co-led the transaction, commented, “The transaction represents a highly successful example of an overseas acquisition by a Chinese company. It involved an innovative acquisition strategy first used by a Chinese company in an overseas acquisition which included acquisition of mezzanine and senior debts of the target company. We fielded a team comprising lawyers from our offices in Beijing, Budapest, Hong Kong, London, Prague and Warsaw. We are very pleased to have advised Wanhua in this transaction and believe we are among only a small number of law firms who have the global network to be able to advise on such complex cross-border transactions.”
The Allen & Overy team was co-led by Joseph Tse and London corporate partner Mark Gearing with assistance from senior associate Ashley Woods. London restructuring partner Randal Weeks led the restructuring while the new financing was led by Budapest banking partner James Graham.
Other advisers included:
• Clifford Chance for Permira.
• Shearman & Sterling/CMS Cameron McKenna for outgoing banks.
• Baker & McKenzie for new banks.
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