DeHeng Advised Beijing Capital on Securing 60%
Equity of Chengdu Jinqiang Water Company

2018-6-27

On May 30, 2018, Beijing Capital Co., Ltd. ("Beijing Capital") issued an announcement on the Shanghai Stock Exchange that Beijing Capital injected capital into Chengdu Jinqiang Water Co., Ltd. through public bidding at Tianjin Property Rights Exchange and gained 60% equity of Chengdu Jinqiang Water Co., Ltd., with a price of RMB 869 million yuan. DeHeng provided legal services for the entire process of this project.

 
Chengdu Jinqiang Water Company, located in Wenjiang District, Chengdu City, Sichuan Province, has 30 years of concession right for water supply in Wenjiang District. It has 4 water supply plants, with water supply capacity of 450,000 tons/day, including an existing capacity of 250,000 tons/day and a further capacity under construction of 200,000 tons/day. Beijing Capital again secured a major water supply project in 2018 following its acquisition of 300,000-ton water supply project in Fanchang County, Anhui Province in mid-May. The project was significant to Beijing Capital for increasing the market share and influence in the water market of the southwest region and continuing to develop the water market in the surrounding areas of Chengdu.  

DeHeng project team, including Bi Xiuli, a partner of DeHeng in the Beijing office, attorney Wang He and assistant attorney Fang Tianhong, provided professional and comprehensive legal services for Beijing Capital in this capital increase and acquisition project. The services included but not limited to: conducting comprehensive and detailed due diligence, drafting and revising numerous transaction documents, and assisting Beijing Capital in negotiations.