Home » Legal Help » Deal watch: Simpson Thacher conjures Blackstone and Alibaba mandates as Linklaters and CC lead on British Steel takeover

Deal watch: Simpson Thacher conjures Blackstone and Alibaba mandates as Linklaters and CC lead on British Steel takeover

Simpson Thacher & Bartlett has picked up two high-profile mandates advising Blackstone on the acquisition of MagicLab alongside the Hong Kong listing of Chinese ecommerce giant Alibaba.

Elsewhere, Linklaters and Clifford Chance (CC) led on Chinese steelmaker Jingye Steel and Iron’s acquisition of British Steel.

Alibaba this week said it was set to raise up to $13.4bn in a secondary listing in Hong Kong, including an international offering of 487.5m ordinary shares and a Hong Kong public offering of 12.5m ordinary shares.

Simpson Thacher is advising Alibaba with a team led by Chris Wong and Daniel Fertig in Hong Kong. Chinese firm Fangda Partners is also advising the group on legal matters pertaining to Chinese law.

Freshfields Bruckhaus Deringer, meanwhile, is advising the underwriters with a team led by M&A partners Teresa Ko, Calvin Lai and Xu Jason. King & Wood Mallesons is advising the underwriters on Chinese law.

Earlier in the week, Jingye Steel agreed to acquire British Steel’s steelworks in Scunthorpe, UK mills at Teeside Beam Mill, Skinningrove and its subsidiary businesses in France and the Netherlands. Following months of uncertainty, the sale is said to have saved 24,000 jobs in the UK. Jingye is planning on investing £1.2 billion over the next decade as well as upgrading plants and machinery.

Linklaters advised Jignye with a team led by London corporate partners Chris Staples and Hugo Stolkin, Hong Kong partner Crystal Chen and restructuring and insolvency partner Matthew Harding.

Staples commented: ‘This is a landmark deal with Jingye’s commitment to significant investment in British Steel ensuring the long-term future of the business.’

The official receiver and special managers of British Steel were advised by CC, with partners Philip Hertz, David Lewis, Nick Rees and Iain White in London leading on the transaction. Paris partner Laurent Schoenstein and Amsterdam Partner Greg Crookes led on the sale of British Steel France Rail Holdings and the sale of FN Steel.

Jingye is a multi-industry group specialising in steel and iron as well as in powder metallurgy, 3D printing, tourism, hotels, and real estate. It distributes to 80 countries, producing 15 million tonnes of steel a year for an annual turnover of about £10bn.

The deal, signed on 10 November 2019, is subject to conditions such as regulatory approvals and employee consultation procedures.

Simpson Thacher also won a mandate advising Blackstone on its proposed acquisition of a majority stake in MagicLab for the value of approximately $3bn.MagicLab owns and operates dating and social networking apps including Badoo, Bumble, Chappy and Lumen. Founder and CEO Andrey Andreev is selling his stake and stepping down from his role as CEO and will be replaced by Whitney Wolfe Herd.

The Simpson Thacher team was led by M&A partner Anthony Vernace and included M&A partner Robert Langdon and corporate partner Clare Gaskell.

Baker McKenzie is advising the majority shareholders of MagicLab. The team is led by M&A partner David Scott and includes partners Leif King and Lawrence Lee in Silicon Valley.

Scott commented: ‘MagicLab is a fantastic business, with terrific brands and huge potential. The Blackstone acquisition is a great opportunity to further develop the platform. It’s been a real pleasure to partner with Andrey and the MagicLab team on this one.’

The deal is expected to close early next year.

Finally, Latham & Watkins advised Interswitch and its shareholders on a partnership with Visa. Visa will acquire a minority equity stake in the business which is valued at $1bn, making it one of the most valuable African Fintech businesses.

The team was led by London corporate partners Kem Ihenacho and Linzi Thomas and included partners James Inness and Christian McDermott. A Morrison & Foerster team led by London corporate partner Andrew Boyd advised Visa. The transaction is subject to regulatory approval.

muna.abdi@legalease.co.uk


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