Eversheds Sutherland has advised Datang International Power Generation Co., Ltd (Datang Power) on its non-public issuance of A-Shares to its controlling shareholder, China Datang Corporation Limited (CDC), and its non-public issuance of H-Shares to a wholly-owned subsidiary of CDC, for an aggregate consideration of approximately RMB13 billion (approximately US$2.1 billion).

This is the first completed non-public issuance of A-Shares and H-Shares involving a whitewash waiver in Hong Kong.

The transaction was highly complicated and involved many novel and difficult issues under the Hong Kong Takeovers Code and Hong Kong Listing Rules due to the differences in regulatory requirements between the People's Republic of China (PRC) and Hong Kong faced by Datang Power in view of its multiple jurisdictions listing status. A solid understanding of the regulatory requirements in the PRC and Hong Kong and an ability to provide innovative solutions were a must to advise on this challenging transaction.

The Eversheds Sutherland team was led by Stephen Mok, Head of Corporate, Asia and Consultant Sin Joh Chuang. Corporate Partner, Norman Hui, was also involved. They were assisted by Viola Cheung, Crystal Kwok, Ian Tam, Luke Ng, Alvin So, Jonathan Lai, Frederica Yeung, Faith Lee and Steven Yuen.

Stephen Mok commented:

“Datang Power is a longstanding and valued Eversheds Sutherlands client. We are very pleased to have advised Datang Power on this market precedent transaction. The successful completion of this transaction is a testament to our expertise in the public M&A arena and our commitment to serve clients to the best of our ability.”

Datang Power is one of the largest state-owned power producers in the People’s Republic of China and is also one of a handful of Chinese companies to be triple- listed in Hong Kong, Shanghai and London. The group is principally engaged in the construction and operation of power plants, the sale of electricity and thermal power, maintenance of power equipment and provision of power related technical services in mainland China.