On 14 June 2024, Wuxi Weifu High-technology Group Co., Ltd. (Weifu; Securities Code: 000581.SZ) and Voith GmbH & Co. KGaA (Voith) entered into a series of transaction documents to reach a package of deep strategic cooperation and investment transaction arrangements in respect of the technical research, development and industrialisation of type IV high pressure (70MPa) hydrogen storage systems. These arrangements include (i) Weifu acquiring 40% equity interest in Voith HySTech GmbH, a wholly-owned subsidiary of Voith, at a consideration of EUR 33 million in cash to establish a German joint venture (German JV); (ii) on this basis, the parties further increasing their capital in the German JV proportionately, with a total additional investment of EUR 55.759 million; and (iii) Weifu and the German JV co-investing EUR 12.136 million to establish a joint venture in China, with Weifu holding a 51% stake and the German JV holding 49%.
Listed on the Shenzhen Stock Exchange in 1998, Weifu is a prestige domestic automotive component manufacturer, one of the Top 30 China Auto Parts Industry Companies, and one of the Top 100 Valuable Listed Companies in China. Hydrogen production from renewable energy and hydrogen storage represent one of the strategic development directions set by Weifu. The cooperation with Voith in the type IV hydrogen storage tank business will help Weifu further expand its layout in hydrogen energy industry, promote the development of its hydrogen energy business and facilitate the realisation of its strategic objectives.
The project relates to legal matters in Germany, China, and other jurisdictions. The transaction covers multiple entities and complex factors, including the divestiture of relevant assets, the establishment and acquisition of shares in related companies, dual domestic and international joint ventures, cross shareholdings, and the transfer and licensing of important intellectual properties.
King & Wood Mallesons (KWM), as the counsel for Weifu, led the transaction and provided legal advice to Weifu throughout. Coordinating a multi-jurisdictional team of lawyers, KWM advised the client on the overall transaction progress, transaction structuring, due diligence, drafting, reviewing and revising relevant transaction documents, and negotiating directly on behalf of the client. KWM ultimately supported Weifu in entering into this strategic investment project, highlighting KWM’s leading and pivotal role in overseas investment by Chinese companies, particularly in complex projects.
This project was led by partner Chen Bing, with support from counsel Dai Enchao and legal assistant Jia Shuyue. Eversheds Sutherland acted as the German counsel for this project.
The project is expected to closed in the second half of 2024 upon obtaining all Chinese and foreign approvals, including the German foreign investment approval, the China State-owned Assets Supervision and Administration Commission approval, and the China outbound investment approval.
