2024-07-02
Articles
State-owned equity repurchase on the actual predicament of the transaction and legal advice
In order to protect investment returns and control investment risks, state-owned enterprises usually agree on repurchase terms in transaction documents. After the repurchase event occurs, state-owned investors have the right to exercise the repurchase right and ask the repurchase obligor to undertake the repurchase obligation. The equity repurchase of state-owned enterprises usually must comply with a series of provisions such as the Law on State-owned Assets of Enterprises, the Interim Regulations on the Supervision and Management of State-owned Assets of Enterprises, and the Interim Measures for the Evaluation and Management of State-owned Assets of Enterprises. When the relationship between state-owned investors, the target company and the actual controller turns cold, the promotion of the approach transaction will inevitably encounter difficulties in practice. This paper makes a preliminary legal analysis on the regulations, practical dilemmas and legal suggestions of state-owned equity repurchase.