Simmons and Simmons advised PCCW in its HK$7.9 billion ($1.31 billion) placement of a 20 per cent strategic stake to China Network Communications Group (China Netcom). As a result of this transaction, China Netcom will own approximately 20 per cent of PCCW. The acquisition marks the largest ever investment in a Hong Kong company by a mainland State-owned enterprise.
China Netcom is acquiring $1.34 billion worth of shares in the company and will pay $5.90 per share — a 25.5 per cent premium to the closing PCCW share price on 19 January. PCCW has stated that it intends to use HK$5 billion ($827 million) of the money raised to fund further investments in mainland China.The deal was led by partners Nick Norris and Henry Ong. They were assisted by corporate associates Nigel Davis, Rachel Wadham and Jodie Coutts.
Norris said the transaction had been strategically significant for both PCCW and China Netcom, and “demonstrated the growing interest by mainland Chinese enterprises in regional and global M and A”.
Blake Dawson Waldron acted for Emeco International, which leases and sells heavy plant and equipment, on its sale to a syndicate comprising GS Private Equity and Pacific Equity Partners.
The sale was completed in late January. Contracts were signed in December 2004, and with a headline transaction value of $470 million, it was the largest Australian private equity investment for 2004. The project required an extensive cross-team effort.
Work started in August 2004 and included a vendor due diligence, verification of an information memorandum, and the creation of a virtual data room by BDW’s LTG team.
The overall team leader for the project was Roger Davies and Matthew May led the completion team.