Fangda acted as the lead legal counsel for Nayuki Holdings Limited (“Naixue”, stock code: 02150.HK) in its strategic investment in Shanghai Chatian Catering Management Co., Ltd., which operates the freshly made tea brand “Lelecha”, for approximately The consideration of the acquisition is approximately RMB525 million.

Upon completion of the transaction, Naixue will hold 43.64% of the shares and become Lelecha’s largest shareholder. The transaction was signed and announced on December 5, 2022, and is subject to a series of closing conditions.

This is the largest transaction in China’s freshly made tea sector in 2022, according to news reports. The deal is a further example of the strength of the firm’s Greater Bay area capability, which has been of particular value to clients during a period of industry-wide consolidation.

Naixue has been listed on the Hong Kong Stock Exchange since June 2021 and is known as the “first freshly made tea stock”. Lelecha is one of the leading companies in the domestic freshly made tea sector, founded in 2016 in Shanghai, and currently operates more than 100 stores in nearly 20 cities nationwide.

Fangda’s Greater Bay Area Shenzhen office, Hong Kong office and Shanghai office worked closely together in this cross-border project, offering full legal services to the client in a deal that involved multiple stakeholders, overcoming Covid-19 constraints and working to a tight timescale.

The Fangda team was led by corporate partners Qiang Ma and Chuck Sun, and team members included counsel Haipan Hu and associates Zhuxin Liu, Haiying Wang, Jessica Zhuang, Qianyu Peng. Partner Raymond Chan and associate Joyce Pei in Fangda’s Hong Kong office provided Hong Kong law advice.