Linklaters Zhao Sheng advises China Merchants Group on Liaoning Port integration project
On 3 November 2018, in Beijing, the Liaoning provincial government and China Merchants Group, alongside various other parties, entered into a Memorandum on Cooperation in respect of Liaoning Port and a Capital Increase Agreement in respect of cooperation on the Liaoning Port project. These agreements set a milestone for the cooperation between a central-government-owned enterprise and a regional government in resources integration as well as the integrated operation of the Bohai Rim Region in Liaoning Province.
Liaoning North East Asia Gang Hang Development Co., Ltd. (“Gang Hang Development”), controlling shareholder of Dalian Port Corporation Limited and Yingkou Port Liability Co., Ltd, is one of China’s biggest port groups in asset size and cargo handling capacity. Under the agreement, China Merchants Group will invest in Gang Hang Development by means of a capital increase, acquiring 49.9% of its equity interest. China Merchants Group will also further its future cooperation with the Liaoning provincial government in areas such as port operation, logistics and transport, park development and finance and services, providing new vigour and strong momentum for the full rejuvenation of Liaoning Province.
This deal involves hundreds of Gang Hang Development’s subsidiaries as well as many overseas and domestic listed companies and as sole legal advisor to China Merchants Group in this deal, Linklaters Zhao Sheng provided a full range of PRC and Hong Kong legal advice.
The Linklaters Zhao Sheng (FTZ) team, was led by partner Eric Liu, who commented “It is our great honour to act for China Merchants Group on this strategic landmark deal, which demonstrates the outstanding capability of the Linklaters Zhao Sheng (FTZ) joint operation in offering seamless PRC and international legal advice, and highlights our strength and experience in advising state-owned enterprises on complex deals involving the acquisition and integration of state-owned assets.”