Global law firm Norton Rose Fulbright has advised Beijing Capital Grand Limited (BCG, 1329.HK) on its privatisation by way of a scheme of arrangement by its parent, Beijing Capital City Development Group Co., Ltd (BCCDG).

The structure comprises a perpetual convertible bond securities offer in parallel with the scheme of arrangement. The privatisation offer is subject to conditions among others, requisite approvals from shareholders and the Cayman Islands Grand Court before delisting of BCG from the Hong Kong Stock Exchange.

BCG is a leading developer and operator of shopping outlet properties in top-tier cities in China. BCG and BCCDG are companies owned by Beijing Capital Group (Capital Group) and under the direct supervision of the Beijing Municipal Government. The privatisation offer is made for cash consideration and initiated to enhance business synergy and resource integration within Capital Group.

The Norton Rose Fulbright team was led by corporate and securities partners Psyche Tai and Rachel Chan, supported by senior associate Timothy Lam.

This marks the second privatisation that Norton Rose Fulbright has advised Capital Group on, following the take-private of the formerly HKEx-listed Beijing Capital Land Co., Ltd by its parent, BCCDG in 2021.

The team regularly advises corporates and financial advisers on general offers and take-private transactions in Hong Kong, including notable deals such as L'occitane International's €6 billion take-private offer, Vinda International's US$3.3bn privatisation, Chow Tai Fook Enterprises' US$4.5bn buy-out of NWS Holdings, Yashili's HK$2.79bn privatisation by China Mengniu Dairy, among others.

Psyche Tai, the Head of Norton Rose Fulbright's Hong Kong office and corporate and securities practice, commented: "We were delighted to have assisted our client in navigating this complex transaction and helping to reinforce their business objectives in a fast evolving market."