On 9 December 2015, the Offering Review Committee of China Securities Regulatory Commission (“CSRC”) approved the application filed by Shanghai Bailian Group Co., Ltd. (stock code: 600827, “Bailian”) for an A-share non-public offering (the “Offering”).
Through the Offering, Bailian proposed to privately offer up to 264,599,841 shares to five specific targets, other than Bailian’s controlling shareholder - Bailian Group Co. Ltd., which participated in the subscription of such offered shares with its ownership of the 49% equities in Shanghai Bailian Zhonghuan Shopping Mall Co., Ltd. and the 51% equities in Shanghai Chongming Xincheng Commercial Development Co., Ltd.. The aggregated proceeds of the Offering (net of the offering expenses) are estimated to be no more than RMB 3.05 billion and will be used for the construction of and as a supplementary working capital for the projects of Nanjing Bailian Outlets Plaza and Bailian Chuansha Shopping Mall. With such great geographic advantages as quick access to public transportation, abundant culture and tourism resources and large consumer market, the development of these two projects will further improve the company’s competitive edge in the business of outlets and shopping centers and offer more room to the company to rise and earn higher returns in the future.
Through the Offering, Bailian will not only absorb high-quality assets of its controlling shareholder and fulfill its commitment on easing horizontal competition, but also introduce China Venture Co., Ltd., Shanghai M&A Equity Investment Funds Partnership and other professional institutions of extensive investment experience as its strategic investors, which will benefit Bailian in learning useful experience, forming boundary-pushing ideas for operation and management, and improving the efficiency and effect of its corporate governance.
Grandall Shanghai Office has been retained as the issuer’s counsel, with Ms. XU Chen, Ms. ZHU Yuting, Ms. MA Minying and Ms. ZHUO Chang’e as key lawyers offering comprehensive and professional service.