Law firms Han Kun and Global, both of whom have been involved recently in a spate of IPOs and acquisitions, are now facilitating a US$732.7m merger in the Chinese telecommunications industry. The deal is between AsiaInfo Holdings and Linkage Technologies and the terms of the transaction stipulate that Linkage shareholders will receive US$60m in cash and about 26.8 million AsiaInfo shares, making them owners of about 36% of the merged company, AsiaInfo-Linkage Inc.

Since advising Linkage on its intention to list on the NASDAQ in 2006, Global has established a very strong relationship with Linkage’s director Sun Libin. “AsiaInfo and Linkage are the largest players in the telecommunications development and solutions sector,” said managing partner Jinrong. “The merger seems only natural in order for the parties to dominate the buyer’s market.”

The firm is now on one hand handling the merger and on the other working on Linkage’s listing. “These two entirely different directions have proved to be rather challenging,” Liu said. “On top of that, the merger is between a listed and a non-listed company. We are also talking about companies which have a great mass of shareholders and these issues also bring forth some structural complications to the transaction.” 

Liu expects more work from the telecoms sector in the near future. “2010 will see much more development – and shifts – in the telecommunications sector, as it is both a consumer and business market. Judging by the number of mobile users in China alone, the market is huge – and that brings many opportunities for the legal industry.”

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