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Clifford Chance says leveraged buyouts possible despite credit crunch -

Latest CVC public-to-private acquisition is law firm’s fourth in two years

Date: April 2008

Keywords (click to search): [Leveraged buyouts] [LBO] [Private equity] [Credit crunch]

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Private equity investor, CVC Asia Pacific, has completed a public-to-private acquisition of the entire business of Asia Dekor Holdings Limited, a Singapore-listed firm and a wood and laminate flooring products manufacturer and distributor in China.

Clifford Chance advised CVC. Its team was led by partner Andrew Whan and counsel Terence Foo. Whan commented that the deal was structured as an acquisition of the entire business of a listed company which, in Singapore, requires only a majority of shareholders to approve. Whan added that the deal shows that leveraged buyouts in the Asian region by strong financial sponsors “are still doable, notwithstanding the credit crunch.”

The deal is the fourth successful buyout in Greater China on which Clifford Chance has advised CVC in the last two years. Others were PTP, Zhuhai Zhongfu and Nien Made.

Stamford Law from Singapore acted for the seller in the acquisition. Jun He Law Offices acted as the PRC local counsel for CVC and on the due diligence.

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