29 December, 2016
Davis Polk advised Shanda Group in connection with its investor rights and standstill agreement with Legg Mason. The agreement contemplates additional purchases of the common stock of Legg Mason by Shanda Group to increase its investment up to 15% of Legg Mason’s outstanding common stock. Shanda Group has also agreed to invest at least $500 million in investment products with Legg Mason affiliates. Legg Mason has agreed to appoint Mr. Tianqiao Chen, Chairman and CEO of Shanda Group, and Robert Chiu, President of Shanda Group, as directors of Legg Mason on or before June 1, 2017. Mr. Tianqiao Chen will be appointed as Vice Chairman when he joins the board. It is expected that Mr. Tianqiao Chen will also sit on the Nominating and Corporate Governance Committee of Legg Mason, subject to satisfying certain requirements.
Founded in 1999, Shanda Group is a global private investment group headquartered in Singapore with a strong sector focus in financial services, health care services, real estate and cutting-edge technologies. Shanda Group is Legg Mason’s largest shareholder, owning approximately 10% of Legg Mason’s outstanding common stock.
Legg Mason is a global asset management firm with $707 billion in assets under management as of November 30, 2016. It provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the NYSE under the ticker symbol of “LM.”
The Davis Polk team included partner Miranda So, counsel Brian J. Snyder and registered foreign lawyer Kevin Zhang. All members of the Davis Polk team are based in the Hong Kong office.
