• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Conventus Law

Conventus Law

Conventus Law

  • About Us
  • Channels
    • Jurisdiction Channel
    • Practice Area Channel
    • Industry Channel
    • Business Of Law
    • Law Firms
    • Special Reports
  • Video
  • Events
  • Explore
  • Search
  • Membership
  • Conventus Doc
x
Search

More results...

Generic filters
Home » Special Report » The Fork In The Privatization Road.

The Fork In The Privatization Road.

September 26, 2022

September 26, 2022 by

In the current economic climate legal experts are divided as to whether the last few months 2022 will be the right time for some companies to go private

No one likes uncertainty, especially investors, so there is significant interest in how the next few months will pan out for global and local markets. With the likelihood of recession and an increase in interest rates facing some economies and ongoing geo-political tensions, it’s a fascinating time for share markets and companies, especially for those companies considering going private. 

Looming in the shadows of this perfect storm, is the sizeable ripple effect at the prospect of Brazil’s Petrobras going private and Saudi Arabian relaunching its privatization plan for its airports. As a result, there is an air of caution and nervous energy in China and Hong Kong as observers keep an eye on activity relating to the equity markets.

With energy prices rising and the efficiency and cost of travel once again on the agenda of world economies, such decisions can have huge impacts on global markets.

So, what does this all mean for companies, and by extension, law firms, active in the China/Hong Kong market. 

“The China and Hong Kong processes are very different, which makes for its own set of challenges. The Hong Kong Companies Ordinance is clearcut in its rules and procedures when it comes to the approval of a privatization scheme, while in China the balancing act between state-owned enterprises and the private sector remains a tenuous one. It’s up to the legal experts to navigate the various issues that will emerge.”

Chris Cheng, Partner, Corporate, Appleby (Hong Kong)

Arguably, the biggest hurdle is for a company to decide on whether it intends to go private and what method it chooses to change its structure. The pros and cons of such a decision are well documented, but what makes privatization such a unique process are the various regulatory structures in place and equally so, the multiple techniques as to how privatization can be achieved. 

The China and Hong Kong processes are very different, which makes for its own set of challenges. The Hong Kong Companies Ordinance is clearcut in its rules and procedures when it comes to the approval of a privatization scheme, while in China the balancing act between state-owned enterprises and the private sector remains a tenuous one.

It’s up to the legal experts to navigate the various issues that will emerge. 

The decision by the Brazilian Government on if, or how, it will privatize Petrobras and to what extent will China play in that, is going to impact the local markets. China’s oil and gas companies have expressed significant interest in any ongoing deals with a slow and steady accumulation of stocks in the South American energy giant.

There is little doubt that the current political and economic environment is a delicate one and there remains a lot of unpredictability surrounding the market forces. Never will the equity markets being able to have working relationships between law firms and companies been more important to establish clear and seamless timelines and processes for privatization deals to be done successfully.

This article was written by Chris Bisogni for Conventus Law in association with Appleby.

Tags: Appleby

WRITTEN BY

Appleby
For further information, please contact:

Chris Cheng, Partner, Appleby
ccheng@applebyglobal.com

Chris Cheng is a partner in the Corporate department of Appleby’s Hong Kong office and he leads Hong Kong Capital Markets team. Chris has more than 20 years of offshore and onshore experience, having previously worked at an international law firm in Hong Kong specialising in capital markets transactions.

He has substantial experience in the area of capital markets, specialising in private and public offerings of debt and equity, private equity, mergers and acquisitions, privatisation as well as bank financing and other corporate and commercial law related transactions. Clients include Bermuda, Cayman Islands and British Virgin Islands entities, many of which are listed on the Hong Kong Stock Exchange, as well as banks and financial institutions.

Chris is registered with the Bermuda Bar and as a registered foreign lawyer in Hong Kong. Chris is admitted as a solicitor in the British Virgin Islands, Hong Kong and England & Wales.

Chris is fluent in English, Cantonese and Mandarin.

EXPERTISE

Recent deals include acting as:

Bermuda counsel to Zhuhai Holdings Investment Group Limited in its privatization by way of a Bermuda court sanctioned scheme of arrangement. The scheme provides each scheme shareholder to receive a cancellation price of HKD3.06 in cash for each scheme share cancelled, totalling an aggregate payment close to HKD1.7 billion.

BVI counsel to CNPC General Capital Limited in the issuance of USD2 billion guaranteed Senior Notes and USD7 billion Medium Term Note Programme. This deal won the Debt and Equity-Linked Deal of the Year Award at the China Law & Practice Awards.

Bermuda counsel to Kerry Logistics Network Limited in its initial public offering on the Main Board of the Hong Kong Stock Exchange, with gross proceeds of approximately HKD2.2 billion.

Cayman counsel to Times Property Holdings Limited in its initial public offering on the Main Board of the Hong Kong Stock Exchange, with gross proceeds of approximately HKD1.94 billion.

BVI counsel to CNPC Golden Autumn Limited, a subsidiary of China National Petroleum Corporation, the largest integrated oil and gas company in China, in the issuance of RMB guaranteed bonds in an aggregate principal amount of RMB2.5 billion and RMB500 million respectively. This deal was nominated for the Debt Market Deal of the Year in the ALB China Law Awards.

BVI counsel to Sinochem Offshore Capital Company Limited in its issuance of 1.8% Guaranteed Notes in an aggregate principal amount of RMB3.5 billion guaranteed by Sinochem Hong Kong (Group) Company Limited. This deal was nominated for the Debt Market Deal of the Year in both the ALB HK Law Awards and the ALB China Law Awards.

Cayman counsel to Kinetic Mines and Energy Limited, a Mongolian coal miner, in its listing on the Main Board of the Hong Kong Stock Exchange with gross proceeds of approximately HKD1.4 billion.

Cayman and BVI counsel to Lumena Resources Corp. in its USD170 million global offering and listing of its shares on the Hong Kong Stock Exchange. This transaction received an Honourable Mention in the Asian-Counsel ‘Deals of the Year’ edition and was nominated for the Equity Deal of the Year in the IFLR Asia Awards.

EDUCATION

  • University of Hong Kong (Hong Kong)
  • University of London (England)

Primary Sidebar

PRESS RELEASES

  • Linklaters Enhances Its Litigation, Arbitration & Investigations Capability With On-ground Presence In The Middle East. 1 July 2025
  • Hong Kong – Linklaters Advises On Chow Tai Fook Jewellery Group’s US$1.1bn Convertible Bond Issuance. 1 July 2025
  • Deacons Advises On The Main Board IPO Of Beijing Xunzhong Communication Technology Co., Ltd. 1 July 2025
  • Sweden – Bird & Bird Advises Engrate On €2.5 Million Capital Raise. 30 June 2025
  • Bird & Bird Secures Multiple Wins At The Women In Business Law Awards 2025. 30 June 2025

NEWS FEED

    July 1, 2025

    Indonesia – When Indonesian Counterparties Falter: Legal Remedies For Foreign Investors.

    - Mahareksha S. Dillon - SSEK, SSEK
    July 1, 2025

    Philippines – Fair Play: Why Pre-listening To Ringtones Is Not A Copyright Violation.

    - Nilo T. Divina - DivinaLaw,
    July 1, 2025

    Philippines – A Dose Of Law At 25: Journey Of Justice, Calling Of Our Time.

    - Nilo T. Divina - DivinaLaw,
    July 1, 2025

    Philippines – GWEC Recognizes Atty. Layug Of Divinalaw.

    July 1, 2025

    India – When Delay Defeats Justice.

    July 1, 2025

    India – Calcutta’s New IP Division Delivers Landmark Judgment: Sets Aside Unreasoned Trademark Orders.

    - Swati Sharma - Cyril Amarchand Mangaldas,
    July 1, 2025

    India – Debt With Discipline: Key Changes Introduced To SEBI LODR Regulations Relevant For High Value Debt Listed Entities.

    June 30, 2025

    Malaysia – Artificial Intelligence Transparency And Corporate Liability.

    June 30, 2025

    High Court Of Hong Kong Confirms Arbitrability Of Shareholder Claims For Oppression And Loss Of Confidence.

    June 30, 2025

    India – AKP Banking & Finance Digest June 23, 2025.

    - Anuroop Omkar - AK & Partners,

Footer

Conventus Law
  • Facebook
  • Twitter
  • Linkedin

CONVENTUS LAW

  • About Us
  • Explore
  • Video
  • Events
  • Contact Us
  • Jurisdiction Channel
  • Practice Area Channel
  • Industry Channel
  • Law Firms
  • Business Of Law
  • Special Reports

OTHERS

CONVENTUS DOCS
CONVENTUS PEOPLE

3/f, 13/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong

social@conventuslaw.com

Terms of use | Privacy statement © 2025 Conventus Law. All Rights Reserved.