Dechert Advises Hong Kong-listed New Century Hotel on its Privatisation by Way of a Voluntary General Offer

Global law firm Dechert has advised Zhejiang New Century Hotel Management Co., Ltd. (New Century Hotel), whose H shares were listed on the Hong Kong Stock Exchange (HKSE), on its privatisation by Kunpeng Asia Limited, a consortium which comprises Ocean Link Partners and Sequoia Capital China. The privatisation was achieved by way of a voluntary general offer for a total consideration of approximately HK$1.4 billion. The offer was declared unconditional on 16 April 2021, and New Century Hotel was subsequently delisted from HKSE on 24 May 2021. 

New Century Hotel is one of the leading hotel groups in China which primarily engages in the operation and management of mid-scale to upscale hotel chains in the country. 

Stephen Chan, Hong Kong-based partner at Dechert, said, “It has been a privilege to work with New Century Hotel, one of our long-standing clients on this significant transaction involving the privatisation of a H-share listed company. Our team has advised on a number of successful privatisation deals over the past two years, and we are seeing an increasing interest in Hong Kong public companies going private. With our strong experience in this area, we are well positioned to continue supporting listed companies on takeover-related transactions in the future.” 

The Dechert team advising on this transaction was led by partner Stephen Chan, with support from associate Charles Lam in Hong Kong. The team previously advised on New Century Hotel’s HK$1.16 billion initial public offering on the HKSE as its Hong Kong legal adviser in 2019.

About Dechert

Dechert is a leading global law firm with 24 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.