Freshfields Bruckhaus Deringer has advised Deutsche Bank in a deal worth up to $4 billion to sell its entire 20 percent stake in Hua Xia Bank to China-based People’s Insurance Company Group (PICC), which was represented by Davis Polk & Wardwell.
Linklaters served as legal counsel to PICC Property and Casualty Company, a PICC subsidiary through which the transaction was carried out. JunHe represented PICC on matters involving Chinese law while Haiwen handled China-related legal concerns for Deutsche Bank.
Deutsche is expected to gain between 23 billion and 25.7 billion yuan from the stake sale at current exchange rates, depending on Hua Xia's share price before the deal closes. Shanghai-listed Hua Xia, which is headquartered in Beijing, has about 80 branches and a market capitalisation worth $20 billion. The acquisition provides PICC with a new channel to distribute its insurance products.
The Freshfields team was led by corporate partners Melissa Thomas, Alan Wang and Heiner Braun. Davis Polk’s Hong Kong-based partner Antony Dapiran oversaw the deal for the firm while Beijing-based corporate partner Pui Hong Chik headed the Linklaters team.
Partner Yu Yongqiang led the deal for Jun He while partner Lan Jie handled the reins for Haiwen.
While Deustche Bank has divested its stake in Hua Xia, it still has interests in China, operating a securities joint venture and an asset management business in the country.
