Freshfields Bruckhaus Deringer and King & Wood Mallesons are advising Shanghai-based China Pacific Insurance (Group) Co. Ltd. on a proposed share placement worth $1.34 billion on the Hong Kong Stock Exchange.
The newly issued shares will represent 16.6 percent of the company’s enlarged Hong Kong-listed shares. Proceeds will be used to increase capital and for business development.
Sovereign wealth funds Government of Singapore Investment Corp. Pte. Ltd. (GIC) and Abu Dhabi Investment Authority as well as the Norwegian central bank Norges Bank have agreed to subscribe to the placement.
GIC is looking to boost its stake in the Chinese insurer from 2.3 percent to 10.6 percent by paying $700 million for more than half of the 462 million new shares issued.
Freshfields Hong Kong partner Calvin Lai led his firm’s work on the deal. King & Wood Mallesons Beijing partners Yang Xiaolei and Su Zheng advised China Pacific on Chinese law.
Both Freshfields and the former King & Wood were legal advisors to China Pacific Insurance when it launched its Hong Kong initial public offering and raised $3 billion in 2009.
Clifford Chance Beijing partner Terence Foo and Hong Kong partner Amy Lo are acting for GIC. Beijing-based Jun He Law Offices is acting as Chinese counsel to GIC.
In February, Clifford Chance also advised GIC on a $30 million investment in Chinese athletic wear manufacturer Li Ning Co. Ltd. GIC also engaged Clifford Chance as counsel on a $179 million investment in Hangzhou-based Intime Department Store (Group) Co. Ltd. last year.