JunHe Advises CBEST on its Merger with CGTG and Material Asset Restructuring

n January 9, 2024, Chongqing Department Store Co., Ltd. (stock code: 600729.SH) (“CBEST”) received the Approval of the Registration of Chongqing Department Store Co., Ltd.’s Merger with Chongqing General Trading (Group) Co., Ltd. (Zheng Jian Xu Ke [2023] No. 2875) issued by the China Securities Regulatory Commission. CBEST’s merger with its controlling shareholder, i.e. Chongqing General Trading (Group) Co., Ltd. (“CGTG”), by way of issuing shares was approved for registration and the registration procedures have now been completed.

CBEST was established in 1992 and is engaged in department stores, supermarkets, electrical appliances, and automobile trading businesses. It owns commercial brands such as “Chongqing Department Store”, “New Century Department Store”, “Shangshe Electrical Appliances” and “Shangshe Automobile Trade” and has established a presence in Chongqing, Sichuan, Guizhou, Hubei and other locations.

This transaction was CBEST’s merger with CGTG by way of a share issuance to the latter’s shareholders. CBEST will take over all the assets, liabilities, business, personnel and other rights and obligations of CGTG. This transaction will expand the asset scale of CBEST, improve its independence, and enhance its market leadership in the retail industry.

JunHe acted as the legal counsel to CBEST and provided comprehensive legal services throughout the whole process of this transaction. It conducted legal due diligence and research on the material asset restructuring and other major matters and provided effective analysis and advice to assist the client in the successful completion of the transaction.

The JunHe team was led by partners SHI, Tiejun, LIU, Xin and SUN, Xiaojia. JunHe partners LIU, Xin and BU, Zhen were responsible for the specific work of this project, with support from partner ZHOU, Fang for the internal control.