Kirkland & Ellis International LLP advised global private equity firm Bain Capital in its investment in GOME Electrical Appliances Holding Limited, China's largest retail enterprise.
The transaction is expected to raise at least HK$3.24 billion (US$418 million), making it one of the largest private equity deals ever done in China.
In the transaction, GOME will issue bonds to Bain Capital convertible into equity potentially representing 11.3% of the enlarged issued capital of GOME for total consideration of RMB1,590 million (approximately US$233 million). GOME simultaneously will launch an open offer to existing qualified shareholders which Bain Capital will underwrite. Upon completion of the transactions, expected in early August subject to the fulfilment of closing conditions, Bain Capital's interest in GOME is expected to be between 9.8% and 23.5% of GOME's enlarged issued shared capital.
"This complex cross-border deal required a uniquely integrated, experienced Sino-U.S. M&A team," said David Patrick Eich, a partner in the Hong Kong office of Kirkland & Ellis International LLP. "We've taken a long-term view on our investment in China and this is how it is paying off for our clients," he added.
The Kirkland team was led by partners David Patrick Eich and Chuan Li in Hong Kong. Other attorneys instrumental to the deal included partners Jesse Sheley and XY Li and associates William Yu, Gloria Qiao, Lilian Xu and Jing Li in Hong Kong; partners Neel Sachdev and Stephen Gillespie in London; partners Laurence Urgenson, Samuel Williamson and Audrey Harris in Washington; partners Kirk Radke and Joshua Korff in New York; and partners Keith Villmow, Linda Myers and Christopher Butler, and associate Michael Carew in Chicago.
About Kirkland & Ellis International LLP's Asia Practice
The Firm's Hong Kong office focuses on complex transnational transactions throughout Asia for private equity funds and serial strategic acquirers. The team of 14 private equity lawyers has extensive experience advising on deals in Australia, China, Hong Kong, India, Japan, Korea, Macau, Singapore, Taiwan, Thailand and other Asian countries. Kirkland's Hong Kong office regularly represents more than 25 private equity funds in their Asian LBOs, PIPEs, joint ventures, growth equity investments, fund formations, restructurings and other complex transactions. The Hong Kong team is bolstered by more than 20 China Practice Group lawyers from the Firm's U.S. and European offices with extensive Asian deal experience and cultural ties.
About Kirkland & Ellis LLP
Kirkland & Ellis LLP is a 1,500-attorney law firm representing global clients in complex private equity, corporate and tax, litigation and dispute resolution/arbitration, real estate, restructuring, and intellectual property and technology matters. The Firm has offices in Hong Kong, Chicago, London, Los Angeles, Munich, New York, Palo Alto, San Francisco and Washington, D.C.