Why Hong Kong-listed companies should look to the Cayman Islands

For any potential bidder considering the acquisition of a listed company, issues such as ease of transaction execution, the ability to respond to a competing offer, timetable and cost will be of great importance. The chosen form of legal process to implement these deals can have a considerable impact on their successful, cost-effective and timely completion.

The Hong Kong public market is characterised by a significant number of companies listed on the Hong Kong Stock Exchange (HKSE) that, often for reasons of historical family ownership, have one or a small number of controlling shareholders. It is not unusual for these shareholders to seek (or agree to support a third party's attempt to acquire) 100% control of the business and delist the company. These transactions are commonly referred to in Hong Kong as privatisations.