Lawyers from Carey Olsen have advised West China Cement Limited (WCC) on its successful global offering and listing on the Hong Kong Stock Exchange (HKEx) which completed on 23 August 2010.
WCC, a leading cement producer in the Shaanxi province of China recognised in 2009 by Forbes magazine as one of “Asia's 200 Best Companies with a Market Capitalization Under US$1billion”, is the first Chinese business held through a Jersey company to list on the HKEx. The global offering, comprising of a Hong Kong public offering and an international placing, was substantially oversubscribed and has raised approximately HK$1,280 million.
Partner Guy Coltman led the team providing Jersey legal advice on the transaction:
“Carey Olsen is honoured to be part of this ground-breaking deal involving a Chinese company of such calibre. This is a major listing for Jersey and an important milestone in our dealings with the domestic Chinese market. We have advised WCC on an ongoing basis having originally acted for the Company on its admission to AIM in 2006 and are delighted to be a part of WCC's team for this very successful transaction. In terms of access to the Hong Kong market, the groundwork was done last year when Carey Olsen advised on Jersey law and assisted Jersey Finance on its application to the HKEx for approval of the admission of companies incorporated in Jersey to be admitted to the HKEx. This successful approval, and the fact that we have now completed the first listing of a Chinese business through a Jersey company on the HKEx, gives us an enviable advantage and recognition as an international financial centre”.
Mr Coltman was ably assisted in the deal by Associates David Allen and Claire O’Boyle.
Miss O'Boyle is currently undertaking a three month secondment with King & Wood in Shanghai, China's largest law firm (who did not act on this transaction), further strengthening the firm's links with China.
Mr Coltman added that Carey Olsen has seen a marked increase of activity related to this region flowing through Jersey.
“Following this deal, we hope to see more Chinese owned companies listing on the HKEx and other markets through a Jersey vehicle because we know that over a quarter of Chinese companies listed on the London Stock Exchange have done so via a Jersey company. With the expertise gained from this Hong Kong listing, we’ll be able to strengthen our reputation further and would expect to see this trend continue.”