Allbright assists WXJF in acquiring the control right of listed company Kangxin (600076)
2019-11-1511416Recently, on behalf of Wuxi Construction Development Investment Co., Ltd. (“WXJF”), Allbright provided full legal services for the acquisition of the actual control right of Kangxin New Material Co., Ltd, a company listed in Shanghai Stock Exchange. (“Kangxin”, securities code: 600076).
Kangxin is a national key leading enterprise in the area of forestry industrialization integrating seedling raising, afforestation and wood deep processing. Its main products include: COSB composite series container bottom plate, bamboo wood composite series container bottom plate, multi-layer solid wood series container bottom plate, COSB environmental protection decoration plate, green building plate and wood structure house; fast-growing poplar seedlings and urban landscape greening species seedlings; fast-growing poplar, all kinds of mountain trees, etc. As a leading forestry industrialization enterprise in China, Kangxin has been awarded “National characteristic high quality seedling base”, “National forestry key leading enterprise”, “National high tech enterprise”, “National forestry standardization demonstration enterprise”, “China forestry industry integrity demonstration park”, “5A level integrity enterprise”, “Contract abiding and trustworthy enterprise”, “Civilized integrity demonstration enterprise”, “China forestry industry integrity enterprise brand” and other honorary titles by the State Forestry Administration, the State Administration for Industry and commerce, the China Forestry Industry Federation and the National Standardization Management Committee.
WXJF was founded in August, 2005. It is a wholly state-owned company directly under the Wuxi SASAC. As an important government project investor in Wuxi, WXJF is mainly responsible for the investment and financing of municipal roads and bridges, environmental greening, key water conservancy, Taihu Lake water and other urban infrastructure projects, as well as promoting the development and construction of Lihu new city and other projects. At present, its business scope includes infrastructure investment and financing, resource operation management, engineering management, project development, foreign investment, finance and other aspects, and it has become the largest and most comprehensive urban infrastructure investment and operator in Wuxi.
In this transaction, WXJF purchased 66.25 million shares from Kangxin’s previous actual controller. After the completion of the transaction, the proportion of shares held by WXJF in Kangxin increased from 9.37% to 15.77%, becoming the largest shareholder of Kangxin. At the same time, the previous controller gave up the voting rights of 124 million shares, which makes WXJF the controlling shareholder of Kangxin, and Wuxi SASAC became the actual controller of Kangxin.
The project team entrusted to provide full legal services for the acquisition project includes AllBright Senior Partner Carl Li, Partner Summer Sheng, Senior Associate Sheldon Wu and Levana Wang.
