Recently, JunHe, on behalf of Shanxi Road and Bridge, completed an issuance of shares to purchase the equity of Pingyu Expressway Project Company and raise funds. Pingyu Expressway Project Company raised RMB 2.923 billion, and the listed company also raised matching funds of RMB 480 million.
This project began in July 2020, and JunHe provided full-process legal services throughout the stages of scheme demonstration, negotiation, approval and implementation.
The underlying asset of this transaction was 100% equity of Pingyu Expressway Project Company, whose main business is to operate and manage supporting facilities such as Pingyu Expressway and service areas. Pingyao-Yushu Expressway starts in Pingyao, Shanxi Province in the west and ends in Yushe County, Jinzhong in the east. It passes through Pingyao, Jiexiu, Qixian, Wuxiang and Yushe along the way.
The Pingyu Expressway was originally an asset of Shanxi Traffic Control Group, which is the main body of transportation resources integration in Shanxi Province. According to 2019 statistical data, Pingyu Expressway has the highest charge per kilometer and the strongest profitability among the operating expressways wholly owned by Shanxi Traffic Control Group.
This was the first major asset restructuring project of a listed company in Shanxi Province, in which the state-owned capital operation company was the main body for state-owned assets examination and approval. JunHe and the independent financial consultant worked together to assist the listed company in relevant demonstrations and communications, and finally promoted the project to pass the meeting smoothly and unconditionally.
Most of the land occupied by Pingyu Expressway is allocated land, and its highway facilities have not yet applied for real estate certificates. Through in-depth studies of the national policy orientation of traffic land and the practical operation of traffic facilities construction, JunHe and the independent financial consultant conducted compliance demonstrations and communicated with various government departments. Through their unremitting efforts, and their understanding of transportation infrastructure assets and capital, the issuance was ultimately successful.