Herbert Smith Freehills advises MMG on HK$9 billion rights issue

Leading international law firm Herbert Smith Freehills has advised MMG Limited (01208.HK) on a HK$9 billion rights issue, one of the largest equity fundraising exercises in Hong Kong's capital markets this year.

The rights issue was 2.8 times oversubscribed.

MMG raised approximately HK$9,079 million (US$1,164 million) before expenses through a rights issue of 3.46 billion shares. The company issued two new shares for every five shares held for a subscription price of HK$2.62 per share.

MMG Limited is a subsidiary of state-owned mining conglomerate China Minmetals Corporation (CMC), with interests in copper, zinc and other metals projects across Australia, Botswana, the Democratic Republic of Congo and Peru.

"We are honoured to have advised MMG on such a high-profile transaction in Hong Kong's capital markets," said Hong Kong partner Matt Emsley. "Energy transition is one of our firm's priorities, which aligns with MMG's commitment to a low carbon future," added Matt.

Herbert Smith Freehills has previously advised MMG on multiple fundraisings in the capital markets, including a HK$2,344.75 million (US$302.16 million) placement of new shares on the Hong Kong Stock Exchange, and a HK$3,968 million (US$512 million) rights issue.

The net proceeds of the rights issue will be used to repay existing debt, allowing MMG to better support the ongoing development of its operating mines.

Partner Matt Emsley led a Hong Kong team advising the client, assisted by senior associate Aaron Li, associates Kaiwen Sun and Eric Yeung, and trainee Tiger Chan. Partners Tim McEwen (Melbourne), Jin Kong (Hong Kong)*, Michael Jacobs (London) and Sarah Ries-Coward (London), and registered foreign lawyer (New York, USA) Haiyun Chen have also provided valuable support.   

"The successful rights issue is another example of our ability to tap into expertise across our global network and advise on cross-border transactions," said Matt.                  

*According to regulatory requirements, Jin Kong's official title is Senior Registered Foreign Lawyer in Hong Kong.