O’Melveny Worldwide

O’Melveny Represents Central China Real Estate and its Controlling Shareholder in US$83 Million Share Sale

August 12, 2022

 

FOR IMMEDIATE RELEASE

HONG KONG—AUGUST 12, 2022—O’Melveny recently represented Central China Real Estate Limited (CCRE) (0832.HK) and its controlling shareholder, Joy Bright Investments Limited, in the sale of 885 million shares of CCRE stock, or 29.01% of the company, to Youdao Development International (Hong Kong) Limited, a wholly owned subsidiary of Henan Tongsheng Real Estate Company, for approximately HK$648 million (about US$83 million).

O’Melveny is also currently representing CCRE in its proposed issuance of convertible bonds to Henan Tongsheng Zhiye, as well as work pertaining to shareholder loans and debt restructuring in connection with the equity sale.  CCRE recently repaid in full the US$500 million 6.875% senior notes due August 2022.

CCRE is a leading real estate developer in Henan Province, China. Youdao Development and Henan Tongsheng Zhiye are wholly-owned subsidiaries of Henan Railway Construction & Investment Group Co., Ltd.

Joy Bright and CCRE are long-time clients of O’Melveny.  O’Melveny previously represented Joy Bright in increasing its stake in CCRE, and in its US$232 million acquisition of China Minsheng DIT Group Limited, one of the largest prefabricated manufacturing companies in China.

The O’Melveny team for the CCRE share sale and convertible bond transaction was led by Hong Kong corporate partner Edwin Kwok, and included counsel Lillian Cheung, associates Yuki Tsang, Edward Poon, and trainee solicitor Jeffrey Hang.

For more about the transaction please see the Hong Kong Stock Exchange announcement here.

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Contact:

Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024
bjacobsen@omm.com

Chris Schob
O’Melveny & Myers LLP
+86 21 2307 7000
cschob@omm.com