DeHeng Advised Shuanghui I&D on

Merging Shuanghui Group through Absorption

2019-07-15

On July 11, the Merger & Restructuring Examination Committee for Listed Companies of China Securities Regulatory Commission held a working meeting to review and approve the proposal for Henan Shuanghui Investment and Development Co., Ltd. (hereinafter referred to as "Shuanghui I&D") to merge with Shuanghui Industrial Group Co., Ltd. ("Shuanghui Group") in Luohe City, Henan Province through absorption as well as its connected transactions.

Shuanghui I&D is the largest and the most competitive player in China's meat industry, with business covering all links of the pork supply chain. In this deal, Shuanghui I&D realized the merger through issuing 1,975,299,530 A-shares to Rotary Vortex Limited, the sole shareholder of Shuanghui Group, with consideration of RMB 39.091 billion.

After the restructuring, Shuanghui I&D will strengthen its principal business in the meat industry, and become more competitive through industrial upgrading and asset integration. With meat industry-related assets brought by the deal, it will seek product innovation and upgrade, improve its operating efficiency, and implement the corporate development strategy. With an improved, streamlined corporate governance structure, it will stimulate its own operating vitality and growth momentum, and consolidate its leading position in China's meat industry.

As the legal counsel of HSBC Qianhai Securities Ltd. - the independent financial consultant of the deal, the DeHeng team was led by partner Xu Jianjun, with primary support from Dong Chen - senior consultant of the Beijing Office, and lawyers Tian Hao, Li Bixin and Wang Anqi. Their high-quality, professional legal services won high praises from the client.