Press Release

Morrison & Foerster Advises TSX-listed China Gold International Resources on its US$309 Million Dual-Listing and IPO on the Hong Kong Stock Exchange and its US$742 Million Acquisition of the Jiama Mine

01 Dec 2010

First dual-listing of a mining company under the new Hong Kong listing regime for mineral resources companies

HONG KONG (December 1, 2010) – Morrison & Foerster is currently representing TSX-listed China Gold International Resources Corp. Ltd. (China Gold International) on its US$309 million initial public offering (IPO) on the Hong Kong Stock Exchange and its US$742 million acquisition of the Jiama Mine, which closes concurrently with the IPO today.  The Jiama Mine is one of the largest copper-polymetallic mines in China.  China Gold International is controlled by China National Gold, the largest gold producer in China.  Proceeds from the offering will be used to acquire overseas gold and nonferrous metal resources, expand production capacity, and replenish working capital. 

China Gold International is the first dual-listing to be completed since the Hong Kong Stock Exchange implemented the new changes to Chapter 18 of the Listing Rules in June 2010. 

“As the Chinese economy continues to flourish, we have seen a significant rebound in IPO activity over the last few months and expect this trend to rise.  We are delighted to be at the forefront of this trend, representing companies going to market and seeing first hand the new Chapter 18’s positive effect on listings by mineral companies.  This transaction is particularly unique in that our client acquired a major mining asset in China which was completed concurrently with the IPO,” says Ven Tan, Managing Partner of Morrison & Foerster’s Hong Kong office and lead partner on the transaction.

This IPO marks a string of successful Hong Kong listings for Morrison & Foerster in 2010.  Morrison & Foerster is currently advising or has advised on the following transactions this year:

  • Da Ming International Holding Ltd., China’s largest stainless steel distributor by trading volume, on its US$86.5 million IPO that also lists today;
  • HL Technology Group, a cable and connector-related products company, on its US$65 million IPO;
  • BNP Paribas SA as sole sponsor of China’s largest dairy company China Mengniu Diary Company Limited’s US$157 million share placement;
  • CCB International Asset Management Limited on its US$14.2 million sale of shares of China ITS (Holding) Co., Ltd., as part of China ITS’ US$106 million global offering;
  • BNP Paribas Capital (Asia Pacific) Limited as sole sponsor of the US$70 million IPO of Chaowei Power Holdings Limited, a leading lead-acid battery manufacturer in China; 
  • TCC International Holdings, a leading cement manufacturer in China, on its US$296 million two-for-one rights offering to shareholders;
  • Macquarie Capital Securities Limited, as sole sponsor on the US$242 million IPO of Man Wah Holdings Limited, a leading Chinese furniture manufacturer; 
  • Sino Biopharmaceutical Limited on its US$213 million share placement on the Hong Kong Stock Exchange; and
  • HSBC and CCB International as joint lead managers on the US$128 million IPO of Ruinian International Limited, China’s largest manufacturer of amino acid-based nutritional supplements. 

The China Gold International transaction team was led by Hong Kong partner Ven Tan, with assistance from Of Counsel Gregory Wang. 

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