By：King & Wood Mallesons
28 June 2019, United Overseas Bank Limited (UOB) entered into an agreement with Shenergy (Group) Company Ltd. (Shenergy) to set up a joint venture consumer finance limited liability company in Shanghai, China.
The joint venture company will have a registered capital of RMB500 million and its establishment will be subject to relevant regulatory approvals. UOB and Shenergy will respectively have a 19.9% and 80.1% shareholding stake in the joint venture company.
The joint venture company will offer consumer financing in China, including personal loans for the purchase of energy products and services. It will tap on the combined strengths of both shareholders, namely Shenergy’s customer base and ecosystem in the country’s energy sector and UOB’s risk management expertise.
The joint venture would help deepen UOB’s presence in China.
UOB is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America.
Shenergy is a Shanghai state-owned limited liability company, with 10 subsidiaries including Shenergy Co., Ltd., Shanghai Gas (Group) Co., Ltd. and Orient Securities Co., Ltd. Shenergy ranks among the top 500 enterprises in China.
As UOB’s counsel in the transaction, KWM managed the transaction, including advising on China laws and regulations, preparing and negotiating the transaction documents, and assisting with the successful signing of the transaction documents.