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Hong Kong – Baker & McKenzie Advises Zhengzhou Coal On HKD2.3bn IPO.

6 December, 2012

 

 

Baker & McKenzie's securities team acted as Hong Kong law, US law
and Russian Federation law counsel to Zhengzhou Coal Mining Machinery Group Company Limited (“Zhengzhou Coal”), a leading comprehensive coal mining and excavating equipment manufacturer in China, on its HK$2.3 billion (US$296 million) global offering. The shares commenced trading on The Stock Exchange of Hong Kong Limited on 5 December 2012.
 
Net proceeds from the global share offering will be used to implement its international business expansion plans, including establishing overseas manufacturing and related facilities in Russia and India, aftermarket service network and parts and components centers in Russia, US, India, Turkey and Australia, coal mining transport equipment manufacturing facilities in Russia, and research and development platforms in Germany and US; develop its coal washing equipment product segment and establish a related manufacturing facility; procure raw materials as well as for working capital and general corporate purposes.
 
The Baker & McKenzie team was led by partner and head of the Securities Practice Group in Hong Kong and China, Elsa Chan, and also invovled Hong Kong-based special counsel Edwin Li and Beijing-based special counsel Ding Chengfei. Alexander Gomonov, Moscow-based Partner, led the team advising on Russian law issues. The team had lead responsibility for legal documentation, drafting of the prospectus, corporate and regulatory issues and general transaction management.
 
In addition to being a leading comprehensive coal mining and excavating equipment manufacturer in China in terms of total sales, Zhengzhou Coal is also the largest hydraulic roof support manufacturer in China in terms of market share based on production volume.
 
UBS, CITIC Securities, J.P. Morgan and Deutsche Bank acted as the joint global coordinators for the global offering. These four banks together with ICBCI are also joint bookrunners for the international offering tranche.
 
The following cornerstone investors have subscribed to H-shares worth US$120 million, representing around 40% of the global offering: China Huadian HongKong Company Limited; Eldon Development Ltd., a subsidiary of Shandong Laiwu Steel International Corp.; Topful Holdings Limited; and Yitai (Group) HK Co., Ltd., a wholly-owned subsidiary of Inner Mongolia Yitai Group Co., Ltd.
 
Zhong Lun Law Firm and Khatain & Co advised on PRC and India law respectively to the Company.
       
Clifford Chance advised on USA and Hong Kong law to the Joint Global Coordinators, Joint Sponsors, Joint Bookrunners, Joint Lead Managers and Underwriters. While Jia Yuan Law Offices advised on PRC law.  
 
For further information, please contact:
 
Jamie Kar, Bake & McKenzie
[email protected]                                                                 
 
 
 

 

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