China is on course to witnessing one of the
country’s largest case of consolidation to date,
but cross-border aspects of the transaction have posed a series
of compliance challenges for the parties involved.
On March 14 CITIC Pacific and CITIC Corp announced the RMB31
billion ($4.6 billion) sale of a 100% equity interest in CITIC
Real Estate, as well as the mainland residential property
assets of CITIC Pacific, to Hong Kong-incorporated China
Overseas Land & Investment (COLI).
But the regulatory aspects of the deal have presented
challenges to the participating lawyers, as counsel to the fact
that it is a sale of state-owned assets under the control of
the Ministry of Finance (MoF).
"It requires the Ministry’s endorsement not
just for the deal itself, but also for how much and at what
price CITIC is allowed to sell and there are a set of rules
that the sellers...