COSCO Shipping Development announced its proposed non-public issuance of A shares, which involved several complex legal issues under Hong Kong’s Takeovers Code, said the legal counsel involved.
The A shares would be offered to no more than 10 specific target subscribers including China Shipping (Group) Company, the controlling shareholder of COSCO Shipping. China Shipping seeks to raise RMB12 billion (US$1.74 billion) through this non-public issuance.
Bonnie Kong, of counsel at Paul Hastings’ Hong Kong office, told China Business Law Journal that China Shipping, together with parties acting in concert with it, controls or is entitled to control the exercise of voting rights in respect of approximately 39.02% of the entire share capital of COSCO Shipping.
