Dentons assisted Hengjian Investment to fund the establishment of Guangdong Shennong and participate in the restructuring of Kangmei Pharmaceutical as an investor

On June 5, 2021, the A-share listed company Kangmei Pharmaceutical Co., Ltd. (“Kangmei Pharmaceutical”, stock code: 600518) issued the “Announcement of Kangmei Pharmaceutical Co., Ltd. Concerning the Court’s Ruling of the Company’s Restructuring and the Continual Execution of the Warning of Stock Going Private”. On November 26, 2021, the Jieyang Intermediate People’s Court ruled to approve the restructuring plan of Kangmei Pharmaceutical; on December 31, 2021, the implementation of the restructuring plan of Kangmei Pharmaceutical was completed.

 

During the restructuring of Kangmei Pharmaceutical, Guangdong Hengjian Investment Holding Co., Ltd., a company directly under the State-owned Assets Supervision and Administration Commission of Guangdong Province, as one of the investors in the restructuring of Kangmei Pharmaceutical, invested through its wholly-owned subsidiary Guangdong Hengjian Asset Management Co., Ltd. in establishing the consortium -- Guangdong Shennong Enterprise Management Partnership (LLP). The restructuring investors consortium is led by Guangzhou Pharmaceutical Group Co., Ltd. and joined by Guangdong Hengjian Asset Management Co., Ltd., Guangdong Industry Investment Fund Partnership (LLP) and Jieyang Jinye Development Co., Ltd.; financial investors such as GF Securities Co., Ltd., Wuhu Xintongrui Enterprise Management Center (LLP), CHINA MERCHANTS PINGAN AMC Shenzhen Linghang Investment Center (LLP), and China Resources SZITIC Trust Co., Ltd. jointly participated in the restructuring of Kangmei Pharmaceutical. A total of RMB6.5 billion was paid to buy a total of 29.90% or 4,145,296,141 shares transferred from the capital reserve of Kangmei Pharmaceutical, of which more than 25% is held by the consortium, the single largest shareholder of Kangmei Pharmaceutical.

 

Dentons Guangzhou Office partners Ni Jieyun and Chen Jieyi acted as special legal counsels for Guangdong Hengjian Asset Management Co., Ltd. to establish Guangdong Shennong Enterprise Management Partnership (LLP), providing legal services including but not limited to: legal opinions, review of agreements associated with the consortium, and assistance in negotiations.