On 30 May 2016, King & Wood Mallesons (“KWM”) acted as the PRC legal counsel for Bank of China (Hong Kong) Limited (“BOCHK”), advising on its disposal of 100% shares of Nanyang Commercial Bank, Limited (“NCB”) for the consideration of HK$68 billion and successfully closed the deal. The transaction marks the first overseas bank’s sale of all its issued shares held by a state-owned financial institution (a HK-registered company) on the domestic equity transaction platform through public listing. It is also a landmark transaction with the highest record among bank equity trading transactions in Asia (Japan excluded), and the financial institution assets transactions in China’s M&A market.

Established in Hong Kong in 1949, NCB was founded by Mr. Chuang Shih-ping, a patriotic leader among overseas Chinese. The bank has 42 branches in Hong Kong, 38 across the Chinese Mainland and presence in San Francisco, U.S. The transaction represents a strategic move for the long-term development of Bank of China Limited Group and BOC Hong Kong (Holdings) Limited Group. It will enhance their financial strength while unleashing the maximum potential of NCB. It will further facilitate the business development of Bank of China Limited Group and BOC Hong Kong (Holdings) Limited Group, accelerate the upgrading of their customer service, product innovation and marketing capability and competitiveness in the ASEAN region, which is in line with their long-term development strategy in the ASEAN region.

Since involved in the project in October 2014, KWM participated in all aspects of the transaction. As the first overseas bank’s sale of all its issued shares on the domestic equity transaction platform through public listing, KWM conducted numerous and detailed research on the relevant trading rules, selection of trading platform, and the design and demonstration of the transaction plan and transaction process, which laid a solid foundation for the follow-up procedures. The project was led by KWM partners Zhou Ning and Liu Sijia of Beijing office, supported by KWM partners Stanley Zhou and Molly Su of Shanghai office.