CS Finance’s Merger with COSCO Finance

Paul Hastings advised COSCO SHIPPING Development Co., Ltd. (“COSCO SHIPPING Development”) on the merger between CS Finance, a non-wholly owned subsidiary of COSCO SHIPPING Development, and COSCO Finance.

Hong Kong and Shanghai-listed COSCO SHIPPING Development provides, among other things, vessel chartering and container leasing services.

CS Finance will absorb and merge with COSCO Finance and upon completion, CS Finance will continue as the surviving entity and will be renamed COSCO SHIPPING Finance, while COSCO Finance will cease to exist as a legal entity and will become a branch of the newly named company. The registered capital of COSCO SHIPPING Finance will become US$422 million. COSCO SHIPPING Development, which originally had a 65% equity interest in CS Finance, will have a 23.38% interest in COSCO SHIPPING Finance.

The merger involved different legal frameworks and concepts in the PRC and Hong Kong, and was subject to several complex legal issues under the Listing Rules. The Paul Hastings team also took the lead in the negotiations with and submissions to the Hong Kong Stock Exchange.

COSCO SHIPPING Development Co., Ltd. is a container shipping company. The Company, led by Sun Yueying, Wang Daxiong and Liu Chong, owns, charters, and operates container vessels for the provision of international and domestic container marine transportation services around the world. In 2017 COSCO SHIPPING Development Co., Ltd. recorded $2.451 billion revenues.

The Paul Hastings team was led by partner Raymond Li (Picture), partner and Chair of Greater China, and of counsel Bonnie Kong, with support from associates Matt Li and Andy Tam.

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

Law Firms: Paul Hastings;

Clients: COSCO SHIPPING Development Co., Ltd.;


Author: Michael Patrini