AKM Industrial Company Limited’s HK$1.8 Billion Privatisation

King & Wood Mallesons advised China International Capital Corporation Hong Kong Securities Limited as financial advisers to Alpha Luck Industrial Limited and AKM Meadville Electronics (Xiamen) Co., Ltd. (Joint Offerors) on the proposed privatisation of AKM Industrial Company Limited, a company listed on the Hong Kong Stock Exchange. Baker McKenzie FenXun advised Alpha Luck Industrial Limited and AKM Meadville Electronics (Xiamen) Co. Ltd.

The privatisation will be implemented by way of a scheme of arrangement under section 673 of the Companies Ordinance (Chapter 622 of the laws of Hong Kong). The total amount required to implement the privatisation proposal is approximately HK$1.8 billion. The scheme has been approved at the court meeting on 22 June 2022.

Upon completion of the proposal, the Joint Offerors will hold 100% of the shares of AKM Industrial, and AKM Industrial will apply for withdrawal of the listing of its shares on the Hong Kong Stock Exchange. AKM Industrial has been listed on the Main Board of the Hong Kong Stock Exchange since June 2014. AKM Industrial is an investment holding company and is also engaged in sourcing of raw materials and equipment and trading of flexible printed circuits and related products.

The Joint Offerors, Alpha Luck is an indirect wholly-owned subsidiary of the State-owned Assets Supervision and Administration Commission, and AKM Meadville manufactures high-density interconnected printed circuit boards, packaging substrates and solution services and is an indirect non-wholly-owned subsidiary of the government of Haicang District, Xiamen.

The KWM team was led by partner Gary Lock (Picture) and counsel Ruth Lau, and supported by associate Sabine Hung.

The Baker McKenzie FenXun team included partners Hang Wang (Beijing) and Christina Lee (Hong Kong) of Baker McKenzie, with support from partner Brian Wong (Hong Kong), and Senior Counsel Yolanda Zheng from the International Capital Markets team of FenXun (Beijing). They were assisted by Special Counsel Bonnie Lau (Hong Kong), associates Ray Chan and Oliver He of Baker McKenzie and Jing Beihai of FenXun (Beijing).

Involved fees earner: Jing Beihai – Baker McKenzie; Ray Chan – Baker McKenzie; Oliver He – Baker McKenzie; Bonnie Lau – Baker McKenzie; Christina Lee – Baker McKenzie; Hang Wang – Baker McKenzie; Brian Wong – Baker McKenzie; Yolanda Zheng – Baker McKenzie; Ruth Lau – King & Wood Mallesons; Gary Lock – King & Wood Mallesons;

Law Firms: Baker McKenzie; King & Wood Mallesons;

Clients: AKM Meadville Electronics (Xiamen) Co. Ltd. ; Alpha Luck Industrial Limited; China International Capital Corporation Hong Kong Securities Limited;

Sonia Carcano

Author: Sonia Carcano