Deals – July 11, 2018

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Allen & Gledhill has represented Kiri Industries, as the plaintiff, on DyStar Global Holdings (Singapore) v Kiri Industries & Ors and another suit before the Singapore International Commercial Court (SICC). The case, which involves major players in the dye industry, relates to Kiri’s investment in DyStar. DyStar’s majority shareholder is Senda International Capital, the vehicle through which Chinese company Zhejiang Longsheng Group made its investment. Kiri is listed in India, while Longsheng is listed in Shanghai. The SICC found that there were instances of oppressive conduct, and that Longsheng was the entity behind such conduct. The case also emphasises that directors must not put the interest of the majority shareholder, who nominated them onto the board, above that of the company’s. This was especially important, since Kiri did not secure any special veto or minority protection rights. Following the SICC’s finding that there had been minority oppression, Senda has been ordered to buy out Kiri’s shareholding in DyStar. Further, the Court has ordered that the losses caused by the oppressive acts are to be written back into the value of the shares in DyStar. Partner Dinesh Dhillon, supported by partners Lim Dao Kai and Margaret Joan Ling, led the firm’s team.

ANM Global has advised Sudeva FC, a Delhi football club, on its acquisition of 85 percent of the shares in Spanish third-division football club Olimpic de Xativa. This is the second Indian acquisition of an overseas football club after poultry company Venkys bought England’s Blackburn Rovers in 2010. Sudeva International Zurich, a subsidiary of Sudeva FC, bought the shares for an undisclosed amount. Partner Nidhish Mehrotra led the firm’s team in the transaction.

AZB & Partners is advising Reliance Industries on its acquisition of 100 percent share capital of Radisys for approximately US$1.72 per share. Partners Ashwath Rau and Kashish Bhatia are leading the firm’s team in the transaction, which was valued at Rs5.15 billion (US$75m) and is yet to be completed.

AZB & Partners has also advised ICICI Securities, Edelweiss Financial Services and Jefferies India, as the book-running lead managers, on the IPO, through an offer for sale, by Indiamart Intermesh of up to 4.3 million equity shares with face value of Rs10 (US$0.145) each. Partners Madhurima Mukherjee and Agnik Bhattacharyya led the firm’s team in the transaction, which was valued at Rs5 billion (US$72.7m).

Bird & Bird has provided Hong Kong law and Singapore law advice to Weiye Holdings, a property developer in China which is dual-listed in Singapore and Hong Kong, on the conditional cash exit offer by Fine Skill Holdings to acquire all the issued ordinary shares in the capital of Weiye for approximately S$127.5 million (US$94m), and the proposed voluntary delisting of the shares of the company in Singapore. Partners Marcus Chow (Singapore) and Wingon Chui (Hong Kong) led the firm’s team in the transaction. 

Colin Ng & Partners has advised Fund Singapore, a financial institution regulated by the Monetary Authority of Singapore (MAS), and Singapore’s premier equity and lending-based crowdfunding company, on the structure and launch of its online platform. Fund Singapore has gone digital, with its online crowdfunding platform providing increased security, accessibility and options to potential investors. Partner Christopher Huang led the firm’s team in the transaction.

Conyers Dill & Pearman has acted as lead Bermuda counsel to Seadrill, one of the world’s largest offshore drilling companies, on its emergence from chapter 11 bankruptcy, after successfully completing its reorganisation plan, which was announced on July 2, 2018. Since February 2016, the firm has been advising Seadrill on the plan and related judicial proceedings in Bermuda, where publicly listed Seadrill and many group companies are registered. The plan equitized approximately US$2.4 billion in unsecured bond obligations, more than US$1 billion in contingent new-build obligations, substantial unliquidated guaranty obligations, and approximately US$250 million in unsecured interest rate and currency swap claims, while extending near term debt maturities. This provided Seadrill with over US$1 billion in fresh capital, leaving employee, customer, and ordinary trade claims largely unimpaired. With re-profiled debt and substantial liquidity, the company has announced that it is in a strong position to execute its business plan. The firm continues to advise Seadrill on the implementation of the new group structure under Bermuda law. Bermuda directors David Cooke, Niel Jones, Robin Mayor and Christian Luthi led the firm’s team in the transaction.

Fangda Partners has represented Ali Health on its investment in pharmaceutical retail chain ShuYu Civilian Pharmacy, which operates more than 1,200 pharmacies in China. Ali Health will acquire an approximately 9.34 percent shares in the target company. The deal was signed on June 25, 2018 and was expected to close by the end of June.

Fangda Partners has also represented Midea on its formation of four joint ventures with Kuka in China. The deal was signed on May 21, 2018 and closed on July 2, 2018.

Maples and Calder (Hong Kong) has acted as Cayman Islands counsel to Momo on its issue of US$650 million 1.25 percent convertible senior notes due 2025. Momo is one of China’s leading mobile-based social and entertainment platforms. Partner Derrick Kan led the firm’s team in the transaction, which closed on July 2, 2018, while Skadden, Arps, Slate, Meagher & Flom acted as US counsel. Davis Polk & Wardwell acted as US counsel to the initial purchasers.

Mayer Brown JSM has represented a syndicate of eight international banks, led by an experienced European ship finance bank, and was entrusted by all outgoing mortgagees to arrange the discharge of the existing security documents, on the funding and closing arrangements for a US$325 million seven-year secured reducing revolving credit facility to PB Vessels Holding, the borrowing entity of the Hong Kong-listed Pacific Basin Shipping. The facility will refinance several of Pacific Basin’s existing credit facilities, and raises fresh capital for previously unmortgaged vessels. The facility further increases Pacific Basin Shipping’s funding flexibility and overall amortization profile, with access to long-term committed funding on a revolving basis for the next seven years at a very competitive borrowing cost. The security package involved 50 dry bulk vessels owned by the Pacific Basin Group, 41 of which were subject to existing mortgages. Hong Kong banking and finance partner Maggie Cheung led the firm’s team in the transaction.

WongPartnership is acting for Bain Capital Private Equity as Singapore counsel in the acquisition of DSM Sinochem Pharmaceuticals, a pharmaceutical joint-venture of Dutch chemicals firm Royal DSM and China’s Sinochem Group. Partners Ng Wai King, Quak Fi Ling and Bonnie Wong led the firm’s team in the transaction.