Merger Between an H-share Company and an A-share Company

November 30, 2007 | BY

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Procedures for a merger involving an H-share company's absorption of an A-share company.

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By Wayne Chen and James Weng

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Following Weicai Power Co., Ltd's absorption of Torch Automobile Group Co., Ltd (TAGC) by issuing new A-shares in exchange for TAGC shares, Aluminum Corporation of China Limited and Shanghai Electric Group Company Ltd respectively established a merger involving an H-share company's absorption of an A-share company.

Under the PRC Company Law(中华人民共和国公司法), corporate mergers are classified as merger by absorption and merger by new establishment. A merger by absorption refers to