Best for Domestic M&A 2019
By deal volume, China International Capital Corp ranked number one on the M&A financial advisers’ league table involving Chinese companies during our awards period, with a market share of more than 11%, according to data supplied by Dealogic.
While it has a strong presence in cross-border transactions including outbound acquisition and inbound investment, CICC truly shone in domestic transactions, covering asset exchange, share repurchase and restructuring of listed companies with a focus on computer and electronics, consumer products, finance, healthcare, real estate, as well as telecommunications.
The clients CICC served during our awards period as a financial adviser ranged from top central government-owned enterprises such as China National Nuclear Corp, China Electronics Group, China National Travel Service Group and Cofco and their subsidiaries, to state-owned and private household names including tech firm Alibaba, property conglomerate Dalian Wanda Group, home-appliance manufacturer Haier Group, and pharmaceutical and healthcare firm Yunnan Baiyao Group.
CICC excels in combining different instruments such as capital reduction, cash option adjustment mechanisms and credit facilities in M&A deals, bringing innovation into complex transactions. It is capable of structuring, coordinating and executing market-oriented acquisitions, rather than purely focusing on affiliated party transactions between listed companies and their largest shareholders.
Acting as the financial adviser for BAIC Group, CICC took part in the restructuring of Chengdu Qianfeng Electronics and the subsequent backdoor listing of the company’s new energy passenger vehicle manufacturing subsidiary BAIC BJEV. The Rmb28.85 billion ($4.1 billion) transaction, which was also supported by a Rmb10.65 billion fundraising with CICC as the joint lead underwriter, saw the new entity named BAIC BluePark become the first new energy vehicle company to be listed in China.
The investment bank also assisted in Wanda Film Holding’s purchase of Wanda Media from its controlling shareholder as well as 19 other counterparties, through share issuance. The asset purchase created the first A-share listed private film and television company with a full industry chain. The Rmb10.52 billion transaction was also the largest asset restructuring of an A-share media company in the private sector.
CICC is also active in the reform of state-owned enterprises including Yunnan Baoyao Group’s acquisition of Baiyao Holdings, a mixed-ownership SOE reform case and the largest M&A deal in China’s pharmaceutical sector in 10 years. CICC acted as the financial adviser for Shenzhen Stock Exchange-listed Yunnan Baiyao in the Rmb510 million transaction.