Linklaters advises on MMG’s HK$4bn rights issue
Linklaters is pleased to have advised on the HK$4bn rights issue by MMG Limited, the Hong Kong and Australian listed arm of Chinese State Owned Enterprise, China Minmetals. The rights issue was announced on 1 November and closed in December 2016. It was underwritten by Macquarie and sub-underwritten by Fosun Hani.
MMG is one of the world's largest copper miners and purchaser of the Peruvian Las Bambas Copper Mine from Glencore in 2014. This was part of the required Glencore divestments necessary to gain Chinese anti-trust approval during its merger with Xstrata. Prior to this rights issue, Linklaters has assisted MMG with various other significant transactions, including the acquisition of its other major copper mine, Kinsevere, located in the Democratic Republic of Congo, as part of MMG’s US$1.4bn takeover of Canadian and Australian listed Anvil Mining Limited.
“The transaction delivers a strong outcome for MMG, with raised funds to be predominantly used to pay down debt”, said corporate partner Craig Dally.
Linklaters have advised on a number of other significant rights issues in the region during 2016, including GBP3.3bn by Standard Chartered, S$720m by Noble Group, HK$3.7bn by Chong Hing Bank and US$150m by Pacific Basin Shipping.
Corporate partner Alex Bidlake, commented:
“This significant secondary fundraising follows a series of other sizable rights issues in the region on which we have advised. Taken alongside the numerous IPOs, placings and open offers in which the firm continues to be involved, it provides a clear illustration of the strength and depth of Linklaters’ equities practice in the region.”
Linklaters partners Craig Dally and Alex Bidlake led on the transaction, supported by associates Christian Felton, Tiffany Yan and Jesslyn Leung.
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