A PRC company’s privatisation and simultaneous Hong Kong listing by introduction could pave the way for more Chinese companies taking a similar approach.
Guangzhou Automobile Group’s (GAC) listing was effected simultaneously with the privatisation of Denway Motors, by way of a scheme of arrangement.
The deal, a first of its kind in Hong Kong, was structured to take into account both GAC and Denway’s joint ventures with other companies. It could be used as a template for firms wishing to tap the H-share market.
Kay Ian Ng, managing partner of Freshfields in Hong Kong,...