4 April 2016, Shenzhen Selen Science & Technology Co., Ltd. (Selen Science & Technology, stock code: 002341) and Japanese T&T Enertechno Co., Ltd. (T&T) have officially signed a package of M&A framework agreements in Tokyo. According to the agreement, Selen Science & Technology purchased lithium battery aluminum-plastic film soft bag business from T&T with a consideration of 9.5 billion Japanese yen (approximately US$88.35 million). The transaction primarily includes acquiring 100% stakes of Newco affiliated to T&T and equipment and materials, and obtaining access to its intellectual property (IP) assets, such as relevant patents, know-how licenses and trademark licenses, as well as technical support.

The transaction is strategically significant to China’s new material industry, especially the lithium ion battery packaging industry. Upon the completion of the transaction, it will boost a breakthrough in the domestic production of lithium battery aluminum-plastic film, which will enhance the upgrade of China's manufacturing industry and in particularly drive the proprietary IP right in the lithium battery soft bag field.

Selen Science & Technology is a national leading hi-tech enterprise solution provider, which integrates prevention of static electricity, R&D, production, sales of products, clean room designs, construction and maintenance. It is also a well-known solution provider for Chinese Lab System and a leader in its field. T&T is a well-known Japanese company, engaged in the manufacturing and sales of lithium-ion battery packaging materials. The two companies will reach win-win results through this transaction. Selen Science and Technology will be able to utilize T&T’s world leading new materials technology, the 100-year brand influence and the sustaining R&D capability, which altogether will accelerate the transition process from Chinese manufacturing to Chinese innovation and the promotion of R&D capability. Selen Science & Technology will also focus on new products driving for profit growth and further expand its market scope, contributing to its long-term development. T&T will make full use of the well-developed marketing channels and network of Selen Science & Technology in China, which provides T&T with a more comprehensive market access in China and gain the opportunity to enter the Chinese market, thus further promotes its global business growth. The transaction is expected to be closed in the second half of 2016.

KWM acted as the legal counsel in this transaction, providing comprehensive and professional legal service on PRC and Japanese law in this project. The transaction is required to comply with both PRC and Japan’s legal and regulatory requirements, which brought great complexity and various challenges. The KWM's responsible partners in the project are Yan Qiong at Shenzhen office, Cecilia Lou at Shanghai office, Chen Tianhua at Tokyo office, Zhang Tiandi and Lin Qingsong at Guangzhou office.

Partner Yan Qiong said: “We are honored to assist Selen Science & Technology on its investment in Japan. The transaction demonstrates a successful technique-oriented outbound investment from a Chinese manufacturer in the Japanese market. Leveraging its professional and comprehensive legal services in cross-jurisdiction, KWM’s legal team has won great compliments from our clients. We will work together with more clients, helping achieve their commercial success and contributing to build future international leading enterprises.”