2021.01.02
Guangdong Expressway Development Co., Ltd. (hereinafter referred to as "Yue Express") shall pay Guangdong ExpresswayCo., Ltd. cash to purchase 21% equity interest of Guangdong Guanghui Expressway Co., Ltd. (the "Project") having passed the inquiry of the Shenzhen Stock Exchange and completed the closing thereof. JunHe acted as the special legal counsel of Guangdong Expressway in this major asset restructuring.
Guangdong Expressway was established in 1993 and is a holding subsidiary of Guangdong Communications Group Co., Ltd. under the State-owned Assets Supervision and Administration Commission of Guangdong Province. The company issued 135 million B-shares in 1996 and 100 million A-shares in January 1998. The shares were listed on the Shenzhen Stock Exchange in February 1998. The shares were praised by domestic and overseas media as the "first expressway shares".
The target company of this material asset reorganization was Guangdong Guanghui Expressway Co., Ltd. (hereinafter referred to as "Guanghui Expressway"), which operates and manages the Guanghui Expressway. The Guangzhou-Huizhou Expressway is an important section of the 15th national highway from Hengshanwei to Qingshuihe River in Yunnan Province, and is an important part of the highway in Guangdong Province. As a key component of the highway network in the Pearl River Delta region, the traffic volume and toll income of the Guanghui-Huizhou Expressway maintained steady growth from 2017 to 2019.
The transaction amount of this major asset restructuring was almost CNY2.5 billion. Through this transaction, Guangdong Expressway has achieved control of the Guangzhou-Huizhou Expressway. beneficial toThis increases the number of expressway projects controlled by listed companies and further strengthens, improves and expands their primary business. The listed companies optimized their asset structure and consolidated their core competitiveness.
As special legal counsel of this material asset restructuring, JunHe participated in the entire process of this Project. JunHe’s team conducted legal due diligence of Yue Express and the Guanghui Expressway and reviewed the relevant legal documents, provided legal opinion and provided assistance to Yue Express and other intermediaries in responding to inquiries from the Shenzhen Stock Exchange. JunHe provided professional, efficient and comprehensive legal services for this project, and won the high recognition and trust of their clients and other intermediaries with their consistent rigorous and efficient work style.
The lead partners of this project were HUANG, Xiaoli (Ally) and Joe Wan.
