- The takeover of Feihe International is the latest
in a string of US-listed ChinaCo take-privates;
- Its Utah incorporation was unusual and required
counsel to consider US litigation risk;
- It was the first take-private to use an onshore
- But counsel see take-privates as bespoke deals,
and expect to see a wide variety of financing
International’s recent take-private was the
first to include a placeholder loan, and is an example for the
growing number of small US-listed ChinaCos going private.
The China-based producer of diary products
encountered increased litigation risk because it was
incorporated in Utah, which required careful consideration from
the company’s special committee.
The deal signifies Asian banks’
increasing comfort with these Chinese take-privates. This was
the first take-private to include a placeholder loan for
increased financing certainty, which was provided by two
The scope of targetcos that banks and sponsors are...