Fangda represented the consortium of Wise Road Capital and JAC Capital in the restructuring and follow-on equity transfer of the Tsinghua Unigroup, which was completed and announced on July 11, 2022. The restructuring involved the exiting of two former shareholders, Tsinghua Holdings Co., Ltd. and Beijing Jiankun Investment Co., Ltd., and appointment of new directors, supervisors and general managers. The consortium of Wise Road and JAC, as strategic investors, have establishing a holding company, Beijing Zhiguangxin Holdings Ltd., to own all of the shares in Tsinghua Unigroup. Tsinghua Unigroup is a large Chinese integrated circuit leading company, which also acts as industry leader in mobile phone circuit design and cloud network equipment and services. Its subsidiaries include listed companies such as Unisplendour Corporation Limited and Unigroup Guoxin Microelectronics Co., Ltd. The restructuring of Tsinghua Unigroup is one of the most high-profile restructuring cases in China.

The Wise Road and JAC consortium is initiated by Wise Road Capital and Beijing Jianguang Asset Management Co. Ltd. (JAC Capital), which includes both state-owned and private capital. The restructuring and change of ownership will boost Tsinghua Unigroup’s competitiveness as a leading in China’s integrated circuit market.

Fangda Partners advised the Wise Road and JAC consortium in the restructuring and follow-on equity transfer, bringing together leading practitioners from the firm’s corporate, capital markets, insolvency and banking practices. The team advised on all aspects of the transaction, including due diligence, investment agreement and structuring, restructuring, and listed company regulation.

Fangda’s Beijing and Shanghai offices collaborated seamlessly in this project to provide clients with one-stop legal services. The Fangda team was co-led by capital markets partners WU Dong and LIU Lu and insolvency partners LI Kai and CHEN Guanbing. Other partners included Rock Wang and WANG Lingqi. The team members included LIU Yang, Albert ZHU, HOU Quan, Harry XU, Jason ZHAO, SUN Lunwen, HONG Qianwen, CAO Nan, Elizabeth SUN and FU Yeli.