In January 2017, as Lead Independent Financial Advisor and Joint Lead Underwriter, CICC successfully helped China Minmetals accomplish the restructuring of its financial-service segment. In the transaction, China Minmetals injected its financial holding subsidiary, Minmetals Capital, into one of its mainland-listed subsidiaries, *ST Jinrui (600390.SH). While *ST Jinrui paid a total price of RMB18.5 bn for the above acquisition, it simultaneously raised RMB15.0 bn in new funding via a private placement.

It is the first transaction ever announced on the mainland’s stock market that involves the flotation of a financial holding company. According to WIND, the size of the supporting fundraising, RMB15.0 bn, was the fourth largest on the mainland’s A-share market in 2016, and represented 81% of the acquisition value topping any other deals of its kind on the A-share market in the last 3 years.

As the only financial holding platform under China Minmetals, Minmetals Capital has gradually set-up a fully-licensed business layout with major focus on securities, futures, trust and financial leasing businesses. Upon the completion of the transaction, Minmetals Capital will be able to further unlock its growth potential by getting access to the enormous size of capital in the A-share market. Last year, also assisted by CICC as the sole independent financial advisor, China Minmetals, the ultimate controlling company of Minmetals Capital, implemented a strategic restructuring with China Metallurgical Group. China Minmetals subsequently became an ultra-large central SOE with asset size of over RMB700.0 bn and annual revenue of over RMB430.0 bn, the largest and the most globalized mental and mining conglomerate in China, as well as the largest and the strongest metallurgical construction and operation service provider in the world. In the future, committed capital support from China Minmetals and access to the controlling shareholders’ broad customer base will both provide Minmetals Capital with extra momentum in its pursuit of a leading position in the industry.

In executing the restructuring, relying on its accurate judgments on market trend and regulatory directions, CICC flexibly adapted the transaction structure and actively coordinated other parties' efforts to ensure the eventual successful closing of this tightly-watched transaction.

The successful completion of the transaction against a tight timetable and a challenging market environment once again demonstrates CICC’s superior capabilities, as a top-tier investment bank, in serving SOEs, executing SOE reforms and restructurings, designing innovative transaction structures and executing complicated deals.