Eversheds Sutherland advised on the disposal of equity stake in SWCS Corporate Services to China Resources Group

The Eversheds Sutherland team also advised on the joint venture arrangement among the Founder Shareholders and China Resources Group in relation to the operation and management of SWCS Corporate Services.

This transaction marks a significant milestone for SWCS Corporate Services in its strategic growth and cooperation with China Resources Group. It creates a platform which is expected to enhance the service capabilities of SWCS Corporate Services to listed companies in the region, expand its influence in the markets of Hong Kong and Mainland China, and unlock value-creation opportunities for SWCS Corporate Services in the future.

Established in 2011, SWCS Corporate Services is one of the leading professional corporate service providers in Hong Kong. It is principally engaged in the provision of corporate services to listed and private companies while expanding into diversified services such as ESG reporting and consultancy, employee stock ownership plan (ESOP), private trust services, shareholder identification services, continuing professional development and training services, and other business supporting services.

China Resources Group is one of the largest state-owned conglomerates in China with its group companies engaging in a wide variety of businesses in the region. The transaction is an important initiative undertaken by China Resources Group to implement its business strategy in Hong Kong and to develop its professional corporate services arm.

The transaction was completed on 18 January 2024.

The Eversheds Sutherland team was led by Senior Partner, Stephen Mok, and he was supported by Partner, Amy Yu, Senior Associate, Alvin So, Associate, Jenny Chen, and Trainee Solicitor, Lauren Lau, of the Hong Kong corporate team. The deal team was also supported by Head of Intellectual Property, Asia, Cedric Lam, Of Counsel of the Hong Kong Litigation & Dispute Management team Jason Tam, and Of Counsel of the Employment, Labour & Pensions team, Joe Choy.

Dr. Maurice Ngai, Director and Chief Executive Officer of SWCS Corporate Services, commented:

“We are thrilled to have completed the transaction to unleash the growth potential of SWCS Corporate Services, creating synergy with China Resources Group to explore opportunities in Hong Kong and Mainland China. It was a great pleasure working with the team at Eversheds Sutherland. Their track record and wealth of experience proved invaluable in guiding the Founder Shareholders throughout the sell side process. We would like to thank the team for their professionalism and dedication as well as their diligence and efforts to help us achieve both our legal and commercial goals in the transaction.”

Stephen Mok, Senior Partner of Eversheds Sutherland, commented:

“It was our pleasure to have advised the Founder Shareholders of SWCS Corporate Services in this remarkable transaction, which will facilitate SWCS Corporate Services’ continued growth and expansion in Hong Kong and Mainland China. We thank our clients for appointing us and for their trust in this milestone deal in the history of SWCS Corporate Services, a leading professional corporate services provider in the Greater China market. We look forward to future opportunities to work with SWCS Corporate Services as they continue to reach new heights.”

Dickson Ng, Head of Corporate Hong Kong, Eversheds Sutherland, added:

“We are honoured to be given the opportunity to act as the trusted legal adviser to the Founder Shareholders of SWCS Corporate Services on this strategically important deal in the corporate services sector in Greater China which has attracted investments from corporates to private equity funds in recent years. The successful completion of this transaction marks a milestone for our client and also showcases the depth and breadth of the Eversheds Sutherland team’s experience and capabilities. We wish the Founder Shareholders, SWCS Corporate Services and China Resources Group every success for this exciting collaboration.”