COSCO SHIPPING Development’s Buy Back A-Shares and H-Shares for up to RMB300 Million


Paul Hastings advised COSCO SHIPPING Development Co., Ltd. on the transaction

COSCO SHIPPING Development Co., Ltd. (“COSCO SHIPPING Development”) on its proposed repurchase of A shares and H shares in the aggregate amount of not less than RMB200 million and up to RMB300 million. Hong Kong and Shanghai-listed COSCO SHIPPING Development is principally engaged in shipping and industry-related leasing businesses, manufacturing of containers and provision of investment and financial services.

COSCO SHIPPING Development proposes to repurchase A shares and H shares on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively. The A shares to be repurchased will be used for future implementation of an A share equity incentive scheme, with a view to improving the long-term incentive system and promoting the sustainable development of COSCO SHIPPING Development.

The proposed share repurchase, particularly when coupled with the proposed non-public issuance of A shares of COSCO SHIPPING Development, involved various legal frameworks and concepts in the PRC and Hong Kong, and was subject to several complex legal issues under the Hong Kong Takeovers Code, the Hong Kong Listing Rules and the Shanghai Listing Rules. The Paul Hastings team took the lead in the negotiations with and submissions to the Hong Kong Stock Exchange and the Securities and Futures Commission.

The Paul Hastings team was led by Raymond Li (Picture), global partner and Chair of Greater China practice, and of counsel Bonnie Kong, with support from associate Andy Tam, trainee solicitor Phoebe Chow and paralegal Olivia Zhai.

Involved fees earner: Phoebe Chow – Paul Hastings; Bonnie Kong – Paul Hastings; Raymond Li – Paul Hastings; Andy Tam – Paul Hastings;

Law Firms: Paul Hastings;

Clients: COSCO SHIPPING Development Co., Ltd.;

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Author: Michael Patrini