The target company, Wuxi Longma Tai Lake High-Tech Development Ltd, was a sino-foreign joint venture established and invested by a domestic investor and a Hong Kong investor. Jinyi’s clients are two state-owned companies, which engaged Jinyi to provide legal services in respect of the acquisition of stakes the Hong Kong shareholder possessed in the target company.

 

After Jinyi was engaged, the firm conducted lengthy negotiations with the Hong Kong shareholder with regard to the acquisition method, the shares to be transferred and the price for the shares on the client’s behalf. After both parties reached agreements in the said areas, Jinyi lawyers communicated with the relevant authorities and obtained the approval of the transfer of the shares in timely fashion for the clients. Finally, the target company was granted a new business license on December 10th, 2009.

 

The target company has been turned transformed into an entirely state-owned company at this point. During the whole process of the acquisition, Jinyi lawyers prioritized the interest of state-owned assets and successfully transferred the foreign shares to domestic shares.