Legal DealFolio - China Investment Corporation stake in SMIC

Slaughter and May, Hong Kong, advised Semiconductor Manufacturing International Corporation (SMIC) in relation to the proposed US$250 million strategic investment in SMIC by China Investment Corporation (CIC), the PRC state-owned investment company. Under an investor subscription agreement, SMIC agreed to issue convertible preferred shares and warrants (carrying rights to subscribe for further warrant preferred shares) to Country Hill Limited, a wholly-owned subsidiary of CIC, for an aggregate consideration of US$250 million. CIC is an investment institution established under the company law of the People's Republic of China in September 2007. CIC is operated strictly on a commercial basis, seeking long-term risk adjusted financial return. Additionally, the Company has agreed to issue convertible preferred shares and warrants to Datang Telecom Technology & Industry Holdings Co., Ltd., (Datang) for approximately US$70 million, as a result of the exercise by Datang of its pre-emptive right to subscribe for new shares and warrants issued by SMIC under an earlier investment agreement with SMIC. Datang is a subsidiary of Datang Telecom Technology & Industry Group, a PRC state-owned enterprise headquartered in Beijing. It is mainly engaged in the core business of TD-SCDMA third generation (3G) mobile telecommunication, wireless access and integrated circuit design. SMIC is principally engaged in semiconductor manufacturing and sales and is listed on the Hong Kong Stock Exchange and the NYSE. SMIC is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China. SMIC intends to use the proceeds of the transactions for capital expenditure and debt repayment. The transaction was announced on 18 April 2011.

Deal Date:	18-04-2011	Practice Area:	Corporate and M&A
Deal Title:	China Investment Corporation stake in SMIC	Industry:	Technology Hardware & Equipment
Description:	Slaughter and May, Hong Kong, advised Semiconductor Manufacturing International Corporation (SMIC) in relation to the proposed US$250 million strategic investment in SMIC by China Investment Corporation (CIC), the PRC state-owned investment company. Under an investor subscription agreement, SMIC agreed to issue convertible preferred shares and warrants (carrying rights to subscribe for further warrant preferred shares) to Country Hill Limited, a wholly-owned subsidiary of CIC, for an aggregate consideration of US$250 million. CIC is an investment institution established under the company law of the People's Republic of China in September 2007. CIC is operated strictly on a commercial basis, seeking long-term risk adjusted financial return. Additionally, the Company has agreed to issue convertible preferred shares and warrants to Datang Telecom Technology & Industry Holdings Co., Ltd., (Datang) for approximately US$70 million, as a result of the exercise by Datang of its pre-emptive right to subscribe for new shares and warrants issued by SMIC under an earlier investment agreement with SMIC. Datang is a subsidiary of Datang Telecom Technology & Industry Group, a PRC state-owned enterprise headquartered in Beijing. It is mainly engaged in the core business of TD-SCDMA third generation (3G) mobile telecommunication, wireless access and integrated circuit design. SMIC is principally engaged in semiconductor manufacturing and sales and is listed on the Hong Kong Stock Exchange and the NYSE. SMIC is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China. SMIC intends to use the proceeds of the transactions for capital expenditure and debt repayment. The transaction was announced on 18 April 2011.
Financial Center:	Hong Kong	Value:	0.00-100.00
Advised Party:	Target Company	Law Firm	Slaughter and May
Target Company Jurisdiction:	Hong Kong	Acquiror Jurisdiction:	China
Classification:	Strategic Buyer Acquisitions Private Company	Lawyer	Benita Yu

Practice Areas -

Corporate and M&A Law Firms and Lawyers

Practice Areas - Corporate and M&A Law Firms and Lawyers