Davis Polk is advising China Yongda Automobiles Services Holdings Limited (China Yongda) in connection with the proposed spinoff of its major subsidiary, Shanghai Yongda Automobile Group Co., Ltd. (Automobile Group).

China Yongda, through its wholly owned subsidiary, entered into a series of asset restructuring agreements with Suzhou Yangtze New Materials Co., (Suzhou Yangtze), a company listed on Shenzhen Stock Exchange of the PRC, on April 15, 2016. Under the agreements, China Yongda Investment has agreed to dispose of the entire equity interests in Automobile Group for a consideration of RMB12 billion (approximately $1.85 billion) to be satisfied by issue of new A-shares by Suzhou Yangtze. Following completion, Automobile Group will be held by Suzhou Yangtze which will in turn be controlled by China Yongda.

China Yongda is incorporated in the Cayman Islands with its shares listed on The Stock Exchange of Hong Kong Limited. It is a leading passenger vehicle retailer and a comprehensive service provider in China which focuses on luxury and ultra-luxury brands.

The Davis Polk corporate team included partners Bonnie Y. Chan and Paul Chow and associates Christine Xu and Kai Sun. All members of the Davis Polk team are based in the Hong Kong office.