Zhongyuan Bank Merges with Three Banks for US$4.5 Billion and Issues New H-Shares

Hong Kong – Paul Hastings, a leading global law firm, announced today that the firm has advised Zhongyuan Bank on its RMB28.47 billion (approximately US$4.5 Billion) merger by absorption of three city commercial banks, including Bank of Luoyang, Bank of Pingdingshan, and Bank of Jiaozuo China Travel Services. In addition, the firm represented in its placing of not less than 3.105 billion H shares in a total subscription amount of not less than RMB3.105 billion.

Zhongyuan Bank is the largest city commercial bank in Henan province in China. Upon the completion of the merger by adsorption, Zhongyuan Bank will acquire all the shares in each of the target banks from the selling shareholders by the issuance of the consideration shares. The target banks will also be de-registered.

The Paul Hastings team was led by Raymond Li, global partner and chair of Greater China, and corporate partner Chaobo Fan, with support from associates Joanne Wong and Alfred Yang, and senior legal manager Jodie Lee.

Dedicated to helping the world’s leading Wall Street and global investment banks, asset managers and corporations achieve their business and legal goals, Paul Hastings is a premier global finance law firm with elite teams in finance, mergers and acquisitions, private equity and litigation.