Guantao advises Shenma Corporation on its strategic cooperation with NILIT Group
On April 18, 2024, Shenma Industry Co., Ltd. ("Shenma Corporation") (stock code: 600810) and NILIT Group held a signing ceremony in Shanghai, China on the execution of the agreement for the joint venture cooperation project on Nylon Materials ("Deal"). This strategic cooperation will not only strengthen the market position of Shenma Corporation and NILIT Group in the Nylon industry but also promote the technological innovations and application development of nylon fiber products. Xu Hongbing, Vice Mayor of Pingdingshan City, Liu Mingyu, Secretary of the Party Working Committee of Nylon New Material Development Zone, Li Mao, Chairman of China Pingmei Shenma Holding Group Co., Ltd., Jiao Xiao, General Manager of Shenma Corporation, Shay Kastoriano, Senior Vice President & Asia General Manager of NILIT Group, as well as relevant intermediaries attended the signing ceremony.
Shenma Corporation, an A-share listed company with chemical and chemical fiber as its main business, is subordinated to China Pingmei Shenma Holding Group Co., Ltd. It is the key management platform of Nylon plate of the Group. Its main products include nylon 66 salt and intermediate products, engineering plastics, industrial yarns (cord fabrics), BCF carpet yarns, airbag yarns, meanwhile, supported by relevant raw and auxiliary materials products, a completely new industry pattern has been formed. Shenma Corporation has an extensive customer base and high reputation in more than 40 countries and regions in the world for its nylon products.
NILIT Group is a global manufacturer of nylon 6.6 fibers with its presence in more than 70 countries and regions. NILIT Group has established manufacturing facilities in Israel, Brazil, China and the United States, which specialize in the polymerization, spinning and texturing of nylon 6.6 fibers. This specialized production chain ensures NILIT Group's leadership in the global textile nylon material industry and at the same time pushes forward at the forefront of technological innovation and product development.
This Deal has lasted nearly four years since its inception, during which time it has undergone complex rounds of negotiations and intensive communications. The cooperation involves a wide range of investment and transaction arrangements, including key segments such as equity acquisition, capital and share increase, establishment of joint venture production and commercial entities, technology licensing and product sales. The implementation and completion of this Deal will rapidly open up the high-end civilian silk market for Shenma Corporation, enhance the core competitiveness of its products and its voice in the market and promote the nylon section and industry chain of Shenma Corporation to become the first-class ones in the world.
As the PRC legal counsel for Shenma Corporation, Guantao has provided professional legal support throughout the Deal. Guantao's key work included conducting legal due diligence to assess risks and compliance, supporting transaction negotiations, providing strategic legal advice to protect the interests of Shenma Corporation, and reviewing the Joint Venture company's legal structure and governance framework in line with the strategic objectives of both parties. In addition, Guantao reviewed all joint venture and co-operation agreements to ensure clarity of the contractual terms and protection of client’s rights and interests and has provided Shenma Corporation with due diligence reports, legal opinions, to support key business decisions and ensure compliance with relevant laws and regulations. The comprehensive legal services of Guantao have ensured the smooth progress of this Deal and provided Shenma Corporation with solid legalprotection. Other intermediaries for this Deal included CITIC (the underwriter for Shenma Corporation), GTJA (the underwriter for NILIT Group), King & Wood (legal counsel for NILIT Group) and KPMG (appraisal agency).
Guantao team, consisting of Mr. Zou Jun, Mr. Jin Jie, Mr. Sun Yan, Mr. Dai Ming and Mr. Zhou Ziliang, have provided professional legal services for the Deal between Shenma Corporation and NILIT Group.
