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Allen & Overy advises on the first ever De-SPAC transaction announced on the Hong Kong Stock Exchange

Allen & Overy is advising the sponsors, comprising CMB International, HSBC and UBS on the first ever de-SPAC transaction announced on the Hong Kong Stock Exchange (HKSE). The de-SPAC transaction will result in the business combination of Aquila with ZG Group and the listing of the ZG Group as the successor company on the HKSE. The transaction comes with PIPE agreements with 10 PIPE investors where proceeds will be HKD605.3 million.

Aquila is a special purpose acquisition company formed for the purpose of effecting a business combination with one or more businesses, with efforts concentrated on technology-enabled companies in new economy sectors in Asia, with a focus on China.

ZG Group operates the world’s largest digital platform for third-party steel transaction and was the first in China to offer a one-stop integrated suite of B2B services covering the entire value chain of steel transactions, including online steel transactions, logistics, warehousing and processing, fintech solutions, SaaS products, and big data analytics, through connecting key participants in the steel transaction industry onto its digital platform.

Hong Kong partner Lina Lee commented: “We take pride in being one of the law firms involved in Hong Kong’s first de-SPAC transaction. SPAC transactions are inherently complex, our teams understand the right processes to move quickly in this rapidly evolving area.”

The A&O team is led by Hong Kong-based partner Lina Lee and counsel Ryan Tou, with support from Matthew Chan and Rachel Chan, as well as Rosie Wang, Hannah Huang and Tim Qiao from A&O’s Shanghai joint operation partner, Shanghai Lang Yue Law Firm.

Partners Alexander Stathopoulos and Kung-Wei Liu provide U.S. securities law input, with support from Rong Wang. Sanctions analysis advice is provided by Nick Ognibene and Zoe Guan.

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