Clifford Chance

Clifford Chance advises GIC on its US$700 million investment in China Pacific Insurance

Leading international law firm Clifford Chance has advised Government of Singapore Investment Corporation Private Limited (GIC) on its proposed HK$5,429,826,000 (approximately US$700 million) subscription of H shares in China Pacific Insurance (Group) Co., Ltd. (CPIC), which is one of China's top three insurance companies and is dual-listed on the Hong Kong and Shanghai stock exchanges.

In the proposed placing, CPIC is proposing to issue a total of 462,000,000 H shares to GIC and two other investors, Norges Bank and Abu Dhabi Investment Authority with gross proceeds of approximately HK$10,395,000,000 (approximately US$1.34 billion). The subscription shares by the three investors in aggregate represent approximately 16.6% of the enlarged total issued H shares and 5.1% of the enlarged total issued share capital of CPIC immediately following the completion of the proposed placing.

A joint Beijing and Hong Kong team led by Beijing partner Terence Foo with the support of Hong Kong partner Amy Lo advised GIC on the transaction. They were assisted by associates Wai Mun Au Yeong and Janet Jiang.

"China is currently undergoing demographic and economic changes which present growth opportunities in what is one of the fastest growing insurance markets in the world. This investment demonstrates the continued interest of investors in this sector," said Terence. "We are pleased to have assisted GIC on this proposed investment in a household name in China."

Clifford Chance also recently advised GIC on two other PIPE investments in Hong Kong listed companies - its approximate US$30 million investment in Li Ning Company Limited in February this year and its HK$1.328 billion investment in Intime Department Store (Group) Company Limited late last year.