Dalian Port’s Merger with Yingkou Port

King & Wood Mallesons acted as counsel to Dalian Port.

On 9 February 2021, Dalian Port (PDA) Company Limited successfully merged with Yingkou Port Liability Co., Ltd. by issuing additional A shares on the SSE to swap the Yingkou Port shares, signifying the successful completion of the “two into one” of the two listed companies under the Liaoning Port Group. Upon the merger, Dalian Port was renamed as “Liaoning Port Co., Ltd.” with stock abbreviation changed to “Liaoning Port”.   

The Liaoning Port integration project is an important initiative jointly promoted by China Merchants Group and the People’s Government of Liaoning Province. This merger marks a new chapter in the development of Liaoning ports following the establishment of Liaoning Port Group in 2019. After the merger, Liaoning Port’s total assets will exceed RMB 50 billion, with its handling capacity accounting for 70% of the total cargo throughput across the Liaoning coastal area. This merger, the first of its kind initiated by a listed company in the domestic port industry, is an important measure to further promote the reform of state-owned enterprises and realize the further combination and integrated operation of Liaoning ports. It will help increase the resource allocation efficiency and market competitiveness. Also, this merger will be of great significance to the reorganization and integration of China Merchants Group’s port business sector, the maintenance and appreciation of state-owned assets, and the intensive development of ports in Liaoning province. It also provides a meaningful path for deepening the business integration of listed platforms in regional port integration and solving the problem of horizontal competition. In addition, this merger by absorption through share swap between Dalian Port (listed both on A–share and H-share markets) and Yingkou Port (listed on A–share market) has been rarely seen in the capital market in recent years. 

The KWM team was led by partner Tang Yiyun (Picture), with team members including partners Gong Mulong, Xie Yuanxun and Chai Zhifeng, counsel Tao Tao, senior associate Zhao Lu, associates Zhu Yijia, Guo Tianqi, Zhang Xiaoyue, Zhang Yiying, Li Xiang and Chang Jiushuai.

Involved fees earner: Jiushuai Chang – King & Wood Mallesons; Guo Tianqi – King & Wood Mallesons; Xiang Li – King & Wood Mallesons; Gong Mulong – King & Wood Mallesons; Tao Tao – King & Wood Mallesons; Xie Yuanxun – King & Wood Mallesons; Zhu Yijia – King & Wood Mallesons; Zhang Yiying – King & Wood Mallesons; Tang Yiyun – King & Wood Mallesons; Zhang Xiaoyue – King & Wood Mallesons; Zhao Lu – King & Wood Mallesons; Chai Zhifeng – King & Wood Mallesons;

Law Firms: King & Wood Mallesons;

Clients: Dalian Port ;

Sonia Carcano

Author: Sonia Carcano