Hang Seng Bank, International Finance Corporation, and GIC Special Investments respectively entered into the Share Subscription Agreement with Industrial Bank on 17 December 2003. Llinks advised Hang Seng Bank in this deal, including structuring, attending negotiations, drafting transaction documents, conducting legal due diligence and providing legal advice.
Pursuant to the transaction documents, 999,000,000 new shares of Industrial Bank will be issued and subscribed by the three foreign investors, which represents 24.98% of the total shares of Industrial Banks after the new share issue. Hang Seng Bank, International Finance Corporation, and GIC Special Investments will respectively subscribe for 639,090,000, 159960000, and 199,950,000 shares, respectively representing 15.98%, 4% and 5% of the total shares of Industrial Bank after this issue. The total investment amount contemplated in the transaction documents is RMB 2,697,300,000.
The approvals of the shareholders meeting and CBRC are pending. This deal is the first in the China banking sector in terms of the number of foreign investors, the investment amount and shareholding percentage by foreign investors.
