Mr. Chambers Yang Attended Ceremony of Takeover of Shanghai Xinda Building Material Co., Ltd. and Suzhou Xinghai Plastic Products Co., Ltd.

Against the background of foreign enterprises entering in China in large numbers and purchasing lots of domestic enterprises, Chinese companies have silently invested abroad or bought FIEs. Among them is a financial group in Whenzhou acquiring foreign equities of Shanghai Xinda Building Material Co., Ltd. and Suzhou Xinghai Plastic Products Co., Ltd.

These two acquired companies were both WFOEs invested in by a listed company in Singapore in early 1990s, and the financial group have gained 10-odd-year-experience in investment and management in the industry of building material and developed deep interests in the acquisitions of these two companies. After rounds of arduous negotiations, the financial group has come to package agreements with the Singaporean company that the group purchased 75% equity of Shanghai Xinda and 25% equity of Suzhou Xinghai and thus these two companies were converted from WFOEs into Sino-foreign EJVs. Just for the realization of the purpose, the financial group sets up an industrial company, completes the acquisitions of the two target companies, and takes them over today.

Mr Chambers Yang, on behalf of the acquirer, provides legal services including the design of the purchase flow, the due diligence, preparations of equity transfer agreements, negotiations, the supervision of the changes of equity ownership and the assistance in the takeover. Mr. Yang receives highly appraisals from major members of the acquirer.