find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
KWM advises on company takeover

KWM advises on company takeover

King & Wood Mallesons has advised Shanghai-based private equity firm Cathay Fortune Corporation (CFC) on its combined off-market takeover with the China-Africa Development Fund (CADFund) to acquire all ordinary shares of Discovery Metals Limited that are not already owned by CFC.

Firms: King & Wood Mallesons (Cathay Fortune Corporation (CFC); GRT Lawyers (Discovery Metals Limited)

Deal: Joint venture between Cathay Fortune Corporation and China-Africa Development Fund

Area: Corporate

Value: Approximately $830 million

Key players: KWM partner Stephen Minns led a cross-border team including Beijing-based partner Jin Xiong, Hong Kong-based partner David Lam and Sydney-based partner Alex Regan, alongside senior associate Paul Schroder

Deal significance: Under the deal, a joint venture of CFC and the CADFund known as Cathay Fortune Investment Limited will acquire 75 per cent and 25 per cent of Discovery Metals, respectively, for $1.70 a share in cash. CF Investment currently owns 13.7 per cent of the ordinary shares of Discovery

Discovery is an Australian Securities Exchange/Botswana Stock Exchange listed copper exploration and production company focused on the emerging Kalahari Copperbelt in northwest Botswana.

The transaction is valued at approximately $830 million and represents a 51 per cent premium to the volume weighted average price of Discovery for the last 30-day trading period and a 42 per cent premium to the $1.20 per share issue price of the institutional equity placement announced on 8 August 2012.

“This is a particularly exciting deal for us because it represents a combined effort across our PRC, Hong Kong and Australia practices.  It was originated in Beijing, with acquisition financing being run out of Hong Kong and the takeover in Australia,” said Minns.  

The offer will be funded by a term loan facility to be provided by China Development Bank and available liquidity of CFC and CADFund.

CFC and CADFund have received approval from the National Development and Reform Commission of the PRC. CADFund requires approval from the ministry of commerce and the State Administration of Foreign Exchange of the PRC, which is expected to be granted by mid-November.

CFC and CADFund require FIRB approval, which is expected to be granted in late October.

CFC and CADFund will submit applications for approval from the Competition Authority and the minister of minerals, energy and water resources of Botswana.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

KWM advises on company takeover
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA applauds proposed Modern Slavery Act
The Law Council of Australia has welcomed new recommendations for the development of a Modern Slaver...
Top-tier offers targeted mentoring for Indigenous law students
Students at Macquarie University will be the first to benefit from a new Indigenous mentoring progra...
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...