Gregory Puff and Michelle Chan Analyze Delaware Guidance on Chinese Going-Private Deals

IFLR has published the article “Chinese take-privates: recent Delaware guidance” by Akin Gump’s Gregory Puff and Michelle Chan, partner and associate, respectively, in the firm’s Hong Kong office. The article focuses on three recent decisions by the Delaware Court of Chancery, examining how they could affect going-private transactions in China.

The first case looks at the role of the special committee and the vote of a majority of unaffiliated stockholders, a so-called “majority of the minority” vote. The second case, Puff and Chan note, examines the duties of a company’s board of directors in a sale of control transaction. The third case covers the single bidder process and whether there are circumstances in which a board might find such a process strategically desirable.

All of these cases, the authors say, will affect the landscape for going-private deals in China because practitioners often look to principles under U.S., and particularly Delaware, law for guidance.

To read the full article, please click here.