CHINA PRACTICE - NEWSLETTER & UPDATE AUGUST, 2016
Volume 3 SHANGHAI, CHINA
ABOUT YIGAL ARNON & CO. INTRODUCTION Established almost sixty years ago, Yigal Despite economic slowdowns in the world in general and in China in particular, there is Arnon & Co. is one of the most still significant and growing economic cooperation between China and Israel. In 2015, respected and dynamic law firms in the two-way trade volume between the countries reached $11.4 billion, with a growth Israel, with a proven track record of rate of 5%. China’s exports to Israel in 2015 were $8.62 billion, up by 11.3% from 2014. innovation and quality in meeting its The situation in 2016 is also very encouraging, especially in light of the strong desire of clients’ needs. A substantial part of Yigal both the Chinese and Israeli governments to foster increased collaboration. Israeli Arnon’s practice is international in scope. Prime Minister Mr. Benjamin Netanyahu and the Vice-Premier of China, Mr. Liu Yandong, While the firm is particularly active in the met in March 2016 at the launch of the 2016 Israel-China Committee for Cooperation in United States, the United Kingdom and Innovation Summit in Jerusalem and announced that their respective governments are Europe (both Western and Eastern), we currently negotiating a free trade agreement between Israel and China. also advise clients regarding their business activities in India, China, Japan, Chinese M&A activity in Israel has also continued apace in 2016. For instance, in April, Singapore and the Far East, and other the Fosun Group announced another Israeli acquisition, this time of Ahava, the maker countries throughout the world. of the world-renowned Dead Sea line of cosmetic products, in a $77 million As part of the growing Asia Practice transaction. In the academic sphere, it was reported in March, 2016, that Israeli and Group, the firm’s China Practice is Chinese universities signed seven academic cooperation agreements including the initiating this Newsletter, as a channel for establishment of a joint Israeli-Chinese study institute. It was also announced that NIS updating our clients and friends with 260 million would be invested in such programs which included as a goal increasing the insights regarding the China-Israel number of Chinese students studying in Israel from the current level of 800 to 3,000 commercial relationship, as well as within five years. And the depth of the China-Israel relationship has now also reached about the firm’s activity in this sector. the sports world: in June, 2016 the Chinese football club Guangzhou R&F offered Israeli football sensation Eran Zahavi an estimated $12.5 million for a 2.5 year contract ABOUT YIGAL ARNON & CO.’s plus a large signing bonus. CHINA PRACTICE Yigal Arnon & Co.’s China Practice is part YIGAL ARNON & CO.’s RECENT CHINA-RELATED INVOLVEMENT of the firm’s growing Asian Practice Group. Comprised of lawyers who have Yigal Arnon & Co.’s China practice has continued to expand significantly in 2016 as the worked with clients from China, India, firm positions itself to be a leader in this sector, particularly in its representation of Singapore, Indonesia, Taiwan and leading Chinese publicly-traded companies and venture capital firms. In July 2016, the Japan, our experience spans diverse firm served as Israeli counsel to Shanghai Giant Network Technology (SGNT) in its industries including agrotech, real acquisition of Playtika, a gaming company headquartered in Israel, for $4.4 billion. estate, infrastructure projects, SGNT led the Chinese consortium that acquired Playtika, which includes Alibaba biotechnology and pharmaceuticals, Group founder Jack Ma and his private equity firm Yunfeng Capital, China Oceanwide software, medical devices, venture capital and investment transactions, Holdings Group, China Minsheng Trust, CDH China HF Holdings, and Hony Capital banking, defense and security. Fund. This is one of the largest global M&A transactions in 2016. Clients value Yigal Arnon & Co.’s In Q4 of 2015, the firm represented Oramed Pharmaceuticals, an Israeli clinical-stage practical and hands-on advice, coupled pharmaceutical company focused on the development of oral drug delivery systems, with deep legal understandings and in a licensing transaction with Hefei Tianhui Incubator of Technologies Co., Ltd. The sensitivities to the cross-cultural aspects agreement, worth $38 million with future royalties, gives HTIT exclusive rights to of representing clients involved in Asia - Israel transactions. market Oramed’s oral insulin capsule, in China, Hong Kong and Macau. In addition, in May, 2016, the firm represented the Shenzhen-based Chinese conglomerate Yigal Arnon & Co. has established Kuang-Chi in a $20 million investment in eyeSight Technologies Ltd., an Israeli start-up professional relationships with leading law firms throughout Asia and, as such, is able company in the field of computer vision technology. Furthermore, Kuang-Chi to offer its clients with comprehensive announced that it is establishing the Kuang-Chi GCI Fund & Incubator, a new legal advice when they are involved in investment fund and incubator aimed at investing in mid-stage Israeli and global transactions both in Asia and Israel. technology companies with a plan to grow this fund to $300 million within three years. TEL AVIV, ISRAEL
RECENT ARTICLES REGARDING CHINA-ISRAEL YIGAL ARNON & CO.’S RECENT CHINA-RELATED EVENTS COMMERCIAL ACTIVITIES
Tower expands 3PEAK analog chip June 2016 collaboration Simon Weintraub and Daniel Green lectured on the topic of Israel-China relations and “TowerJazz VP Asia Pacific Sales and doing business in China, at the Hebrew University of Jerusalem’s MBA Program, see here. China Business Development Todd Mahlen said, “3PEAK’s commitment to The firm sponsored the China-Israel High Tech Investment Forum in Tel Aviv. Daniel solely manufacture its devices at Green moderated a panel discussing Medical Device & Digital Health. TowerJazz’s fabs is a testimony to our The firm hosted a large delegation of Chinese investors, many of whom were world class design enablement and participants in the China-Israel High Tech Investment Forum, at the firm’s offices. Simon superior power and analog technologies.” Weintraub presented to the delegation about doing business in Israel.
Chinese media: Qoros to open Israeli May 2016 R&D center The firm, jointly with OurCrowd, a leading equity crowd-funding platform and client of “Chinese automaker Qoros is consider- the firm, hosted a road show of Israeli startups presenting for a visiting Chinese ing the establishment of an advanced delegation led by Radiant Venture Capital from Hong Kong and various large research & development center in Shanghai-based banks. Simon Weintraub welcomed the delegation members and Israel, Chinese media report.” presented on doing business in Israel. Daniel Green spoke on a panel about the China-Israel relationship and technology Joint Israeli-Chinese fund raises over transactions at a seminar for nearly 50 Executive MBA students from the University of Beijing. $200m “Catalyst CEL Fund announced today April 2016 that it had closed with commitments in excess $200 million. The Fund is the first The firm hosted Glory Ventures and a delegation of leading Chinese investors. Daniel dedicated Israel-China private equity Green and Simon Weintraub presented to the delegates and certain clients of the firm fund, and was established in partner- met with investors in the firm’s Tel Aviv office. ship with Catalyst Private Equity, a leading Israeli private equity firm and March 2016 China Everbright Ltd., a leading Hong Daniel Green and Simon Weintraub traveled to China to meet with clients and leading Kong based asset manager.” Chinese law firms, investors and banks. They also lectured to software and biotech companies about technology transactions and doing business in Israel. Cornerstone laid for China’s first Israeli The firm hosted a Chinese delegation of investors from Jiangmen, Guangdong Province. university Partner Nimrod Vromen presented to the delegation. “Hong Kong billionaire Li Ka-shing donated $130 million to the Guang- January 2016 dong Technion Israel Institute of The firm, in cooperation with the global accounting firm PWC, hosted a roundtable Technology.” discussion on ‘Doing business in China’. Daniel Green presented on ‘Legal Considerations for Israel – China Technology Transfer’. Sino-Israeli relations: Just do it! “Ambassador Zhan Yongxin has a message for Israelis who want do FOR MORE INFORMATION PLEASE business in China. “Just do it,” says CONTACT: Zhan, borrowing the enormously success- Advs. Daniel Green, Partner & Simon Weintraub, Partner ful late 1980s Nike branding slogan.” Follow us Yigal Arnon & Co.
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