King & Wood Mallesons (KWM) has advised Baobab Group on the successful sale of its Hong Kong subsidiary, MicroCred China (along with its PRC operational subsidiaries), to a Cayman domiciled fund managed by a prominent PRC/Hong Kong-based asset manager and financial investor.
The transaction, which also involved a sale by the World Bank’s International Finance Corporation (IFC) was completed in October 2024.
It highlights Baobab Group’s strategic focus to advancing financial inclusion for the underbanked in Sub-Saharan Africa.
Baobab is a leading financial institution, which provides financial services to half a million micro-entrepreneurs and small businesses in Africa.
It expands its reach to MSMEs in frontier markets by leveraging data and digital technologies, thereby fulfilling its mission of broadening access to finance among those underserved by traditional banks. Baobab’s global range of products includes micro-loans, savings solutions, and mobile payments.
KWM has acted as legal counsel to Baobab and MicroCred China for many years, providing financing, corporate and employment legal advice in Hong Kong and the PRC.
KWM’s provided all-around legal support to Baobab and MicroCred China in HK and the PRC on this landmark 3-year transaction including:
- assistance with a competitive bidding sale process
- pre-transaction restructuring (buyout of certain minority shareholders, including sovereign and development funds, in several stages)
- highly complex transaction structuring (including tax advice, dealing with lenders to the group and bespoke payment and cross-border escrow arrangements)
- drafting and negotiation of all documents
The KWM deal team was led by partner Ike Kutlaca in Hong Kong, with support from Ken Xu and other HK team members, and the KWM Sydney team was led by French-speaking M&A partner Gilles Cardonnel. The KWM PRC team, led by partners Atticus Zhao and Jessie Yu, provided support for PRC corporate matters and PRC tax matters related to the transaction, respectively.
The broader KWM Hong Kong team providing comprehensive legal services to MicroCred China contributing to its growth has included Jessica Zhou (Banking & Finance) and Ricky Lioe (employment and general corporate).
Compagnie d'Investissements et de Gestion Privée (CIGP) acted as financial advisors to Baobab. Han Kun Law Offices and Shihui Partners provided legal services to the buyer. Gide Loyrette Nouel also provided foreign legal support to Baobab.
Any reference to "Hong Kong" or "Hong Kong SAR" shall be construed as a reference to "Hong Kong Special Administrative Region of the People's Republic of China".
