Jiangsu Xinning Modern Logistics Co., Ltd. (‘Xinning Logistics’ or the ‘Listed Company’) acquired 100% equity interests held by the relevant shareholders in Guangzhou E-trans Information Co., Ltd. (‘E-trans’ or the ‘Target Company’) for up to RMB 720 million and successfully raised RMB 240 million by issuing new shares for financing the acquisition (the ‘Restructuring’). In July 2015, the Restructuring was approved by the CSRC and the sales and purchase of underlying assets closed in August 2015; in September 2015, the capital financings and the listing of the new shares on the Shenzhen Stock Exchange were completed. Representing the issuer in the Restructuring since July 2014, JunHe helped the Listed Company and the acquirers secure the CSRC approval and the successful closing of the transaction.
Prior to the Restructuring, the Listed Company mainly engaged in bonded warehousing and logistics, while the primary business of the Target Company was satellite navigation. Upon the completion of the transaction, the extensive technologies that the Target Company has in the field of satellite navigation and positioning will be helpful for the Listed Company to strengthen its position in the intelligent logistics industry and provide more effective support for big data processing, operational control, day-to-day decision and strategic direction in relation to warehousing and logistics. The Restructuring will facilitate synergy between the Listed Company and the Target Company with respect to the traditional warehousing and logistics industry and its satellite navigation business.
With regard to a disagreement among certain acquirers about whether to inject the stake in E-trans into the Listed Company, JunHe advised the acquirers on the right of first refusal retained by the Target Company’s shareholders and finally helped the acquirers reach a consensus on this issue and successfully carry out the Restructuring. The JunHe team brought professional advice and solutions regarding the legal issues involved in the Restructuring and made contributions to its obtainment of the CSRC approval. JunHe was highly recognized by the issuer and other intermediary agencies for its high-quality, prudent and effective legal services in the transaction.
Messrs. YU, Yongqiang (YY) and Chen Guiyang jointly led on this project.