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BKL Advised LG Electronics, LG Chem, and LG International Corp on The Sale of Beijing LG Twin Towers

2020-04-14

LG Electronics Inc., LG Chem Ltd. and LG International Corp. have sold Beijing LG Twin Towers (“Sellers”) to Reco Changan Private Limited, a wholly owned subsidiary of GIC Private Limited  (“Purchaser”). The deal was structured in multiple jurisdictional layers in a way that the Sellers have sold to the Purchaser 100% of the shares of a Hong Kong entity, LG Holdings (HK) Limited (“HK Entity”). The HK Entity holds all of the shares of a Chinese company, which owns the titles to the Beijing LG Twin Towers. 


BKL has provided legal advice to the Sellers and their deal advisor (S&I) and contributed to the successful closing of the deal. The transaction value amounts to approximately KRW 1.4 trillion (CNY 8 billion), which makes it as the largest exit transaction by the Korean companies in history with respect to their investments in the People’s Republic of China. 


In addition to the deal size, the transaction involved complex cross boarder issues as it involved entities in multiple jurisdictions such as People’s Republic of China, Hong Kong and Seoul. Particularly, some of the difficulties of the deal occurred due to the merger filing requirements in Ukraine, the protests in Hong Kong, and COVID – 19 pandemic. 


In collaboration of the attorneys in Seoul Office and Beijing Office, BKL has provided effective advisory services during all stages of the deal from bidding process, legal due diligence, documentation, negotiation, the merger filings, and the closing. 

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