Advised by King & Wood Mallesons (KWM), China International Capital Corporation Limited (CICC) successfully acquired from Central Huijin Investment Ltd (Huijin) the entire equity interest in China Investment Securities Company Limited (CISC) via issuance of domestic shares for a consideration of RMB16.7 billion. The transaction is another strategic move for expansion made by CICC following its successful listing on the Main Board of the Hong Kong Stock Exchange (HKSE) in 2015, which will help the company seize opportunities to enhance its position in the industry and support its ambition to become a world-class investment bank.

CICC is a China-based premier investment bank with a global presence. The company was listed on the main board of HKSE in November 2015. As China’s first joint venture investment bank, CICC pioneered various deals that drove the development of China’s capital market. CISC is a national integrated securities company, with 206 business outlets in major cities across the country. It has outstanding performance across its principal businesses of securities brokerage and investment banking. Prior to the transaction, CISC is a wholly-owned subsidiary of Huijin. The acquisition will combine the advantages of the two entities and will have far-reaching implications for future business development.

The transaction is the first case where an H-share securities company had its major asset restructured by the way of issuing domestic shares. It also provides unique lessons that can be used in integrating the security company resources of Huijin. Acting as the legal counsel for CICC, KWM fully participated in the transaction, assisting the client developing its reporting proposals to the State Council, the Ministry of Finance, the China Securities Regulatory Commission and other government authorities, participating in the drafting and negotiation of the agreement and obtaining regulatory approvals. The project was led by partner Su Zheng.

Su Zheng commented, “After its listing on the main board of HKSE in 2015, we are pleased to provide CICC with professional legal services on another highly strategic project. CICC is a long-term client of KWM. We have worked closely on a number of landmark transactions. We always provide first-class services to our clients with innovative solutions, in-depth knowledge and rich experience in the industry. It has enabled us to be a close business partner to assist the clients in achieving their strategic goals.”