Summary of Contents
Table of Contents ix
List of Abbreviations xxiii
List of Charts and Checklist xxvii
List of Deals xxxix
List of Key Regulations xlvii
Introduction 1
Part I
Takeover 7
Chapter 1
Tender Offer 9
Chapter 2
Tender Offer with Delisting Purpose or Risk 41
Chapter 3
Negotiated Transfer and Indirect Takeover 53
Chapter 4
Exemption of Offer and the 2% Creeper 83
viii
Summary of Contents
Chapter 5
Change of Interests 107
Part II
Takeover in Particular 121
Chapter 6
Transfer by State-owned Shareholder (SS) 123
Chapter 7
Strategic Investment by Foreign Investor 147
Chapter 8
Takeover Involving Share Exchange 185
Chapter 9
QFII Investment 225
Part III
Restructuring 251
Chapter 10
Private Placement (Designated or Price Bidding) 253
Chapter 11
Public Offering (Initial or Secondary) 297
Chapter 12
Substantial Asset Restructuring (SAR) 343
Chapter 13
Asset Purchase through Private Placement 397
Chapter 14
Merger (by Absorption) and Separation (through IPOs) 423
Index 471
Table of Contents
List of Abbreviations xxiii
List of Charts and Checklist xxvii
List of Deals xxxix
List of Key Regulations xlvii

Introduction 1
Part I
Takeover 7
Chapter 1
Tender Offer 9
1.1. Introduction 9
1.2. The CSRC Approval And Key Regulations 10
1.3. Special Issues in Tender Offer 13
1.3.1. The Choice between General Offer and Partial Offer 13
1.3.2. The 5% Offer Threshold 14
1.3.3. Conditions to the Offer 15
1.3.4. Disqualification of the Offeror 17
1.4. Pricing and Payment 18
1.4.1. Pricing Basis 18
1.4.2. Cash Offer and Performance Bond 19
1.4.3. Consideration Securities and Cash Option 19
1.4.4. Valuation and Custody of the Payment Securities 20
x
Table of Contents
1.5. Offer Period 21
1.5.1. Minimum and Maximum Offer Period 21
1.5.2. Commencement of the Offer Period 22
1.5.3. Expiration and Extension of the Offer Period 22
1.6. Disclosure of the Offer 23
1.6.1. Disclosures in the Process 23
1.6.2. Contents of the Offer Report 24
1.7. The Procedures Step by Step 27
1.8. Activities Prior to the Offer’s Expiration 33
1.8.1. Amendment and Cancellation by the Offeror 33
1.8.2. Tendering and Withdrawal thereof by the Target
ListCo’s Shareholders 34
1.8.3. Contested Offer by Third Party 35
1.8.4. Investigation and Recommendation by the Target
ListCo’s Board 35
1.9. Restrictions to the Activities 37
1.9.1. Restrictions on the Offeror 37
1.9.1.1. No Cancellation during the Offer Period 37
1.9.1.2. Restrictions on the Trading of the
Target ListCo’s Stocks 37
1.9.2. Restrictions on the Tendering Shareholder 38
1.9.2.1. No Sale during Temporary Custody 38
1.9.2.2. Restrictions to the Withdrawal of the Tendering 38
1.9.3. Restrictions on the Target ListCo’s Board 39
1.9.3.1. No Frustrating Action 39
1.9.3.2. No Resignation 39
1.10. Roles of the Financial Advisor 39
Chapter 2
Tender Offer with Delisting Purpose or Risk 41
2.1. Introduction 41
2.2. Public Floating Requirement 41
2.3. Special Issues for Tender Offer
with Delisting Purpose 43
2.3.1. Minimum Condition 43