Central China Management’s Spin-off and Listing

O’Melveny & Myers LLP advised BNP Paribas, China Construction Bank International, Industrial and Commercial Bank of China International and other underwriters on the deal. Conyers provided British Virgin Islands and Cayman Islands legal advice to Central China Management Company Limited.

Central China Management Company Limited announced the spin-off and listing on the Hong Kong Stock Exchange (HKSE).

The spin-off is a demerger effecting the separation of the project management business from other businesses of the Central China Real Estate Limited (HKSE.832) and a separate listing on the HKSE. The listing raises approximately US$126 million.

China Central Management is the second Chinese project management company to list on the HKSE. The transaction is subject to the requirements of Practice Note 15 (PN15), under which China Central Real Estate Limited was required to make a PN15 application and obtain approval of the HKSE in order to spin off Central China Management. The deal structure involves a distribution-in-specie and preferential offering of Central China Real Estate Limited, and a global offering by China Central Management.

Strategically focused on Henan province, China Central Management is a leading and fast-growing project management company in terms of aggregate gross floor area sold and compound annual growth rate for total sales amounts for projects under management.

O’Melveny corporate partner Edwin Kwok (Picture) led the team advising on this transaction, and was supported by capital markets counsel Vincent Lin, Lillian Cheung, and Qianyu Hu, associates Yuki Tsang and Qianru Hong, and Hong Kong trainee solicitors Cherry Ma and Ronald Lam.

The Conyers’ team was led by Partner Anna Chong.

Involved fees earner: Anna Chong – Conyers Dill & Pearman; Lillian Cheung – O’Melveny & Myers LLP; Qianru Hong – O’Melveny & Myers LLP; Qianyu Hu – O’Melveny & Myers LLP; Edwin Kwok – O’Melveny & Myers LLP; Vincent Lin – O’Melveny & Myers LLP; Yuki Tsang – O’Melveny & Myers LLP;

Law Firms: Conyers Dill & Pearman; O’Melveny & Myers LLP;

Clients: BNP Paribas; Central China Management Company Limited; China Construction Bank Corp.; Industrial and Commercial Bank of China;

Sonia Carcano

Author: Sonia Carcano