24 October, 2019
King & Wood Mallesons (KWM) acted as the legal counsel of New Hope Dairy Co., Ltd. (“New Hope Dairy”) in its approximately RMB710 million acquisition and subscription of the 9.28% issued shares of the Hong Kong-listed China Modern Dairy Holdings Ltd (“China Modern Dairy”, SEHK stock code: 1117). The completion of the transaction was subject to a number of conditions, including approval from NDRC (National Development and Reform Commission), SAFE (State Administration of Foreign Exchange) and the Ministry of Commerce.
The successful delivery of this transaction showcases the seamless collaboration of the Chengdu and Hong Kong offices in offering one-stop-shop advice in respect of both Hong Kong* and PRC laws to New Hope Dairy.
China Modern Dairy is the largest modern dairy farming operator and fresh raw milk producer in the PRC in terms of its herb size and milk yield. New Hope Dairy is a leading regional dairy products supplier in the PRC, with its shares listed on the Shenzhen Stock Exchange.
Commenting on the transaction, Gary Lock, partner of the KWM Hong Kong office said, “We are pleased to have advised on the strategic cooperation of these two market leading companies in the dairy industry. This closing complements our cross-border M&A capability and our deep understanding of the domestic and international regulatory landscape. Leveraging our global network will enable us to continue and play a key role for our Chinese clients as we advise on their complex transactions involving multiple jurisdictions.”
“Congratulations to New Hope Dairy and Modern Dairy for the successful closing of this significant transaction,” Liu Feng, partner of the KWM Chengdu office added. “The dairy industry in China has accelerated its business operations in light of the increasing consumer confidence in the quality of dairy products. Drawing our knowledge and experience in agricultural and the food industries will enable us to better help our clients in fulfilling their business objectives.”
The KWM Chengdu and Hong Kong team was led by partners Liu Feng and Gary Lock, with support from counsel Ruth Lau, senior associates Yang Wei and Cai Li and associate Sammy Ng.
