Hogan Lovells has represented Welling Holding Limited (“Welling”) (HKSE: 382) in its privatisation by Midea International Corporation Company Limited, a wholly-owned subsidiary of Midea Group Co., Ltd. (“Midea Group”) (000333.SZ), by way of a scheme of arrangement under section 673 of the Hong Kong Companies Ordinance. This is the third successful privatisation in Hong Kong by way of a scheme of arrangement under the Hong Kong Companies Ordinance since it came into force in 2014.
Midea Group is principally engaged in the production of home appliances, motors and their parts, import and export of home appliances, home appliances raw materials and parts, installation, maintenance, and after-sales service of home appliances. Welling is principally engaged in the manufacturing, distribution, and selling of motors and electric components for household appliances in the PRC and overseas.
At a cancellation consideration of HK$2.60 per share, the cancelled shares are valued at HK$1.85 billion (US$237 million). Welling became a wholly-owned subsidiary of Midea Group and its parties acting in concert upon the scheme becoming effective.
The transaction was announced on 10 November 2017 and Welling was delisted on 20 February 2018. Please click here for more information on the transaction.
Welling Holding Ltd. is an investment holding company. The Company, led by Zhang Lifeng and Pan Xinling, along with its subsidiaries, manufactures, distributes and sells household electrical appliances, which include air-conditioners, refrigerators and mini-refrigerators. Welling also holds investment properties and rent car parks and properties.
The Hogan Lovells Hong Kong based team was led by partner Nelson Tang (Picture) and supported by associates Jeffrey Lee and Jessica Shing, and trainee solicitor Christy Tsui.
Law Firms: Hogan Lovells;
Clients: Welling Holding Limited;