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Clifford Chance Hong Kong advises Singapore's sovereign wealth fund on increased investment in leading sports brand in China

16 February 2012

Clifford Chance Hong Kong advises Singapore's sovereign wealth fund on increased investment in leading sports brand in China

Leading international law firm Clifford Chance has advised the Government of Singapore Investment Corporation (GIC) on the RMB189 million (approximately USD30 million) investment by its affiliate in convertible bonds in Hong Kong listed Li Ning Company Limited, a leading sports brand enterprise in China. GIC is an existing investor in Li Ning and this investment, which was made alongside a larger investment by TPG, takes GIC's aggregate investment (together with its affiliates) to approximately 8% of the fully diluted share capital of Li Ning, assuming the bonds are fully converted.

Hong Kong partner Simon Cooke led the team and was assisted by associate Wai Mun Au Yeong with support from partners Amy Lo in Hong Kong and Terence Foo in Beijing. 

"This deal represents the latest in a long line of PIPE deals for private equity investors and further evidence that in light of recent economic conditions, private equity investors see value in public markets in Asia," said Simon.

Clifford Chance also advised GIC on another consumer PIPE deal late last year, its HKD1.328 billion (approximately US$170 million) investment in Intime Department Store (Group) Company Limited. GIC subscribed for new shares representing approximately 4% of the total number of shares in issue and purchased existing shares from the controlling shareholder representing approximately 3% of the total number of shares in issue. This raised GIC's stake in Intime to approximately 9.08% of the enlarged issued share capital.

In Beijing, Terence led the team and was assisted by senior associate Jiang Niao and associate Wang Menghan. He also received support from Hong Kong Partner Amy Lo who was assisted by associate Wai Mun Au Yeong.

Terence who worked on both deals said: "We are very pleased to have assisted GIC with another deal. It is clear that private equity investors are still attracted to China's consumer sector."