Management Buyouts of US-listed Chinese Companies


The last twelve months has seen a wave of management buyouts of US publicly traded companies with Chinese operations. These companies, referred to in this article generally as “Chinese companies”, were previously listed on the NYSE, the NASDAQ or other exchanges and have been taken private by the companies’ own chairmen and management, in some instances backed by private equity financing and/or debt financing.

The reasons for conducting a take-private transaction vary. A number of Chinese companies have struggled with the reporting requirements of the Securities and Exchange Commission (the “SEC”) under the US Securities Exchange Act of 1934 (the “Exchange Act”) and corporate governance standards under the Sarbanes- Oxley Act. Some companies believe that by being listed abroad, they do not benefit from brand awareness, and thus their shares suffer from low trading volume and low p/e multiples. Evidence suggests that these companies’ shares typically trade at a significant discount compared to their peer companies listed on the Chinese and Hong Kong stock exchanges. In many of these transactions, it is anticipated that once privatised, these companies will likely look for better listing opportunities closer to home in the medium term.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© White & Case LLP | Attorney Advertising

Written by:


White & Case LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.