Skip to main content

 

Paul Hastings and Cleary Gottlieb Steen & Hamilton have helped WH Group, the world’s biggest pork company, successfully launch an IPO in Hong Kong on the firm’s second try.

 

The offering, which debuted on Aug. 5, saw WH Group issue 2.57 billion new shares at HK$6.20 a share, raising US$2.05 billion. Prices were modest at 11.5 times 2014’s earnings per share, compared to 20 times in April’s botched offering.

 

Paul Hastings advised WH Group on Hong Kong and U.S. law, and was led by Raymond Li, partner and chair of the firm’s greater China practice, alongside Hong Kong partners Catherine Tsang, Steven Winegar and Zhaoyu Ren.

 

Commerce & Finance Law Offices provided PRC legal advice to WH Group, while Maples and Calder advised the pork company on Cayman Islands law.

 

A Cleary Gottlieb team led by Hong Kong partner Freeman Chan advised Morgan Stanley and BOC International, the joint sponsors and underwriters, on Hong Kong and U.S. law. Haiwen & Partners and Jingtian & Gongcheng advised the banks on PRC law.

 

WH Group’s first attempt at an IPO in April saw the firm try to raise $5.3 billion, but scared off investors with high valuations, overly-generous executive compensation, and mismanaged marketing that saw 29 banks involved in the deal.

 

The pork company’s second IPO saw investors scramble for shares in the company, with retail demand accounting for 55.22 times the shares on offer, said the company in a filing.

 

Proceeds from the successful IPO would help WH Group manage its debt after it acquired Virginia-based Smithfield Foods Inc in 2013 for $4.9 billion, the largest acquisition of a U.S. company by a Chinese firm.

 

Reuters reported that the deal could still raise as much as $2.4 billion for WH Group if BOC International and Morgan Stanley exercise an option to meet additional demand by issuing an additional 385.1 million shares.

Related Articles

A&O Shearman、高赢助力中国生物医药公司普米斯9.5亿美元并购交易(ZH/EN)

近日,A&O Shearman作为BioNTech的法律顾问,为其收购中国生物医药公司普米斯提供法律服务;高赢国际律师事务所则为普米斯提供法律意见。

汉坤、方达、竞天公诚、凯易助力科创板首单“A收H”交易(ZH/EN)

科创板上市公司亚信安全完成香港联交所主板上市公司亚信科技的控制权收购。汉坤律师事务所在交易中为买方提供中国法律服务;方达律师事务所、凯易国际律师事务所则担任卖方法律顾问;竞天公诚律师事务所担任融资方渤海银行的法律顾问。

方达、苏利文、奋迅·贝克麦坚时助力中印26亿美元钢铁领域合资交易(ZH/EN)

中国民营钢铁公司中国东方集团宣布将与世界第二大钢铁公司、印度安赛乐米塔尔合作,共同在中国设立两家合营企业。方达律师事务所、美国苏利文·克伦威尔律师事务所作为中国东方集团的律师参与交易;奋迅·贝克麦坚时为安赛乐米塔尔提供法律意见。