58 Suyun (“58 Suyun”), a freight business unit of 58 Home, China’s largest online marketplace servicing platform, and GOGOVAN (“GOGOVAN”), the leading intra-city logistics and freight online platform in Southeast Asia, executed the definitive agreement for their merger and closed the deal at the end of August, 2017.
The combined company will be an intra-city online platform in Asia able to provide full on-demand logistics and freight services to both corporate and individual customers. It will also serve as a market leader in the industry of intra-city logistics and freight services in multiple markets including Mainland China, Hong Kong, Taiwan, Singapore, South Korea, India and other Asian countries and cities. The combined company will continue to be branded as GOGOVAN outside of China and 58 Suyun in China.
A complex transaction, this project involved the arrangements for 58 Suyun’s spin-off from 58 Home and its restructuring, the possible tax implications of the transaction structure on the operating units of each party in multiple jurisdictions, and the rights plan for shareholders in several rounds of finance for the deal between 58 Home and GOGOVAN. JunHe acted as legal counsel to GOGOVAN, engaged in due diligence investigations in the logistics and freight business of 58 Home, drafted and reviewed transaction documents, and offered advice and opinion regarding the transaction structure and the legal issues in respect of regulations and contracts. In its highly effective expertise and services, JunHe helped the parties successfully complete the drafting, negotiating and execution of the transaction documents and the closing of the deal.