19 February 2020

KWM advises FAW Car on the unconditional approval of its major asset restructuring by the CSRC

On 18 February 2020, restructuring plan of major asset replacement and purchase of assets by share issuance and cash and its related transactions of FAW Car Co., Ltd.(”FAW Car”, 000800.SZ) has obtained unconditional approval from the Review Committee on Mergers and Acquisitions of Listed Companies of China Securities Regulatory Commission (CSRC) at the 4th meeting of the CSRC in 2020 for its. In light of the restructuring plan, the listed company intends to exchange out its original passenger car business, and acquire the commercial vehicle business assets from FAW Jiefang Automobile Co., Ltd. ("FAW Jiefang") in separate deals valued at RMB 5.1 billion and RMB 27 billion respectively.

FAW Car is a controlling subsidiary of FAW Group Co., Ltd. (“FAW Group”) and one of FAW Group's main companies in developing its own passenger car brand. FAW Jiefang, China's leading domestic commercial vehicle brand, is one of the China’s commercial vehicle enterprises with world-class complete vehicle technology and three core assembly technologies. Through the aforementioned restructuring, FAW Car will capitalize on the rapid growth of its commercial vehicle business to get FAW Group’s commercial vehicle business listed in the A-share market, significantly improving the level of asset securitization. This move is conducive to driving leapfrog development and the revitalization and development of the local economy by tapping existing inventory and creating incremental development to further improve profitability.

King & Wood Mallesons acted as the special legal counsel for this restructuring project. During the epidemic period, by working together with securities regulators, enterprises and relevant intermediaries, the KWM team provided professional and efficient legal services for clients despite many difficulties.

This project was led by partners Tang Lizi, Han Jie and Liu Hu.

20200219

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