Morrison & Foerster represented an affiliate of Ascendent Capital Partners as one of the Joint Offerors in its offer to privatize China Automation Group Limited (CAG) (0569.HK) by way of a Cayman scheme of arrangement for HK$391,998,649.50 (about US$50.06 million). Ascendent Capital Partners also provided a loan facility to the other joint offeror (being the controlling shareholder of CAG) for the purpose of the offer.
The privatization was approved by the independent shareholders at the court meeting and extraordinary general meeting on September 23, 2019. The shares in China Automation Group Limited are expected to be withdrawn from public trading on the Hong Kong Stock Exchange in late October 2019. MoFo advised on both the acquisition finance and corporate sides of the transaction.
China Automation Group is a China-based company principally engaged in: (i) the provision of safety and critical control systems and control valves specialized for petrochemical industries, along with related maintenance and engineering services; and (ii) hospital business in Suzhou, the PRC.
Ascendent Capital Partners (Asia) Limited is a private equity investment management firm focused on Greater China-related investment opportunities, managing capital for globally renowned institutional investors, including sovereign wealth funds, endowments, pensions, and foundations.
The relationship partner for Ascendent Capital Partners is Marcia Ellis, co-head of MoFo’s Asia Private Equity practice. The team was led by corporate partner Vivian Yiu and finance partner Yemi Tépé. Team members also included Hong Kong corporate associates Bill Chan and Olivia Tang, as well as Hong Kong trainees Katrina Tsoi and Wyatt Zhang, and Singapore associate Elaine Zhou.