On the 6th November, Saft Groupe SA (“SAFT”) signed a Cooperation Agreement with the Tianneng Group (“Tianneng”), to establish a neo-energy joint venture and expand their lithium-ion activity in China. This occasion was attended by Mr. Xi Jinping, the President of the People’s Republic of China (“PRC”), and Mr. Emmanuel Macron, the President of France.
SAFT is a wholly-owned subsidiary of Total, one of the Fortune Global Top 500 companies, and a world-leading company with 100 years of history. SAFT’s primary activities focus on the provision of state-of-art battery solutions for industrial, aerospace, marine, aviation and ground equipment.
Tianneng is known as one of the leaders of the battery manufacturing industry in China. Its parent company, Tianneng Power International Limited (stock code: 00819), was listed on the Main Board of the Hong Kong Stock Exchange in 2007, being the first Chinese battery company to be listed there.
This project intends to combine the competitive advantages of both SAFT and Tianneng to establish in-depth cooperation in all sectors including technology and marketing. Particularly, both parties aim to strengthen the collaboration of research, development, manufacturing, and sale of lithium-ion batteries, modules and battery packs for electric bicycles and electric vehicles. Such research will also aid in the provision of better energy storage solutions, promote stronger alliances in the industry and rapid development of the global energy sector.
As counsel to SAFT, JunHe provided comprehensive legal services, including assistance with the transaction structure, legal due diligence, drafting and negotiation of transaction documents, closing of the transaction, and submission documents such as those required by operators. The tricky part of this project is balancing the corporate governance interests of both parties while ensuring the finalized structure of the joint venture is in line with the requirements of the Tianneng Group. Regardless of the difficulties and challenges of the transaction, JunHe managed to find a way to provide innovative solutions that were acceptable to both parties and move the project to completion. Given JunHe’s rigorous legal services, professionalism, and problem-solving ability, JunHe gained great acclaim and was highly regarded by both parties.
The leading partners of this project were Mr. HUA, Xiaojun (Warren), Mr. ZHENG, Yu and Ms. Yung Yung Janet Hui while the executive partners were Mr. ZHENG, Yu (transaction) and Ms. [Yung Yung Janet Hui]] (operator concentration). Mr. YI, Yisong from the capital market team, Ms. ZHAO, Tingting from the taxation team, Mr. HE, Jiaming (Catherine Ho) from Hong Kong office, as well as associates from the patent team and trademark team also provided a great deal of support for this project.