DeHeng Advised Shenzhen State-owned Assets' Participation
in RMB 30 Billion Capital Increase Program of CSAIR
2019-09-02
China Southern Airlines Group Co., Ltd. (hereinafter "CSAIR") officially carried out its equity diversification reform recently. At the group level, CSAIR introduced capital increase of RMB 10 billion each from Guangdong Hengjian Investment Holding Co., Ltd., Guangzhou City Construction Investment Group and Shenzhen Penghang Equity Investment Fund Partnership (Limited Partnership) determined by Guangdong Province, Guangzhou City and Shenzhen City, totaling RMB 30 billion. After the capital increase, CSAIR becomes a central state-owned enterprise group with multiple and diversified shareholders. CSAIR's equity diversification reform is the first innovative sample that uses a cooperation model between central state-owned enterprises and local enterprises to promote equity diversification reform at the level of central state-owned enterprise groups.
Shenzhen Penghang Equity Investment Fund Partnership (Limited Partnership) is a special industrial fund approved by Shenzhen Municipal Government to support the diversification reform of CSAIR and spur the development of the air transport industry in Guangdong-Hong Kong-Macao Greater Bay Area, especially Shenzhen. Shenzhen Kunpeng Equity Investment Management Co., Ltd. (hereinafter "Kunpeng Capital"), a Shenzhen municipal state-owned company, is authorized to manage the fund.
As a special legal counsel for Kunpeng Capital, DeHeng set up a project team headed by lawyers Su Qiyun and Liu Shuang, supported by lawyers Huangfu Tianzhi, Li Junheng, Wang Yang and Deng Yuge. The team provided a full range of legal services in the project to assist Kunpeng Capital to complete the plan determination, negotiations, preparation of transaction documents, establishment and closing of the special fund. DeHeng lawyers provided professional, comprehensive and efficient legal services for the participation of Shenzhen State-owned Assets in the equity diversification reform project of CSAIR, and were highly praised by the client for their services.
