Search results for

Kartick Maheshwari, Khaitan & Co Mabel Lui, Winston & Strawn In Hong Kong, WINSTON & STRAWN hired a four-lawyer team from DLA Piper that included the firm's Asia corporate head Mabel Lui. DLA PIPER is relocating M&A partner Paul Chen from its Silicon Valley office in June to take over Lui's leadership role. Harry Prabawa from Prabawa & Hayya in Jakarta has joined HANAFIAH PONGGAWA & PARTNERS as partner. Prabawa specialises in World Trade Organisation rules and disputes and will head the firm's international trade practice group.

Antonio Felix de Araujo Cintra The Brazilian Securities Commission (the CVM) and the Brazilian Government have recently proposed and enacted some regulatory changes aimed at incentivising the entry of small and medium-sized local companies into the stock markets. These efforts are the result of a long and focused campaign by several players who believe that the development of financing alternatives for small and medium-sized companies is key for the future development of the economy in Brazil. Instruction CVM number 391, which governs the formation and organisation of private equity funds (Fundos de Investimentos em Participacoes, or FIPs), has been amended. The main change here will be an increase in investments by FIPs in companies listed in a special listing segment of the Brazilian Stock Exchange, known as Bovespa Mais, which is directed to small and medium-sized companies. The amended rule now provides that FIPs may invest up to 35% of their portfolio in companies listed in Bovespa Mais, without being subject to the general rules governing FIPs that require them to always ensure that they have an effective influence on the invested company's management.

Riaz Janjuah, White & Case Johan Ysewyn, Covington & Burling The big news in Brussels was the departure of Clifford Chance EU competition partner Johan Ysewyn to COVINGTON & BURLING. Having only joined Clifford in 2011 from Linklaters, the news is timely for Covington following the loss last year of its head of competition. Ysewyn will be joined by former Covington lawyer Peter Camesasca is returning to the firm after running his own competition outfit. Elsewhere in the city, public law specialist Barteld Schutyser has rejoined EUBELIUS from DLA Piper, having previously been an associate partner with the firm from 2002-07. In particular his work focuses on public procurement law and public-private partnerships (PPP) and regulatory litigation.

Niloy Pyne Barnik Ghosh Private Equity (PE) firms entering the Indian market have adopted two types of indigenous models for investment, since the model of leveraged buy-out followed in many western markets is not permitted in India. These models are: (i) the growth model, where PE funds acquire a minority stake in a company with some affirmative rights and a board seat primarily for oversight, but no involvement in the day-to-day management; and (ii) the buy-out model, where PE firm buys an ownership stake either on its own or with other PE firms in the expectation of exit through public listing. PE firms need an approval from the Foreign Investment Promotion Board (FIPB) for foreign investments into funds which have been registered as trusts under the Alternative Investment Funds (AIF) Regulations 2012. Indian asset managers sponsoring PE funds set up offshore vehicles, which need to first be registered with the Securities and Exchange Board of India (SEBI), which takes about a month or so. The application is then sent to the Reserve Bank of India, which generally takes an additional six months for clearing the application. Simultaneously, an application needs to be filed with the FIPB for foreign direct investment clearance in case of foreign investments.

José Ramón Paz Morales In the early 1990s, with the support of the international community, two securities exchanges were established in Honduras that formalised the domestic securities market for public offerings and injected much-needed capital into various sectors of the Honduran economy, especially the energy sector. By the mid 1990s, around 150 non-financial sector issuers were listed in both securities exchanges, representing approximately 90% of the total issuers listed. These issuers provided a broad range of attractive investment instruments to all kinds of local and foreign investors. In 1998, the Honduran financial system suffered a systemic crisis that began with wide ranging defaults in different sectors of the Honduran economy, caused by the effects of Hurricane Mitch. The crisis was aggravated by the lack of regulations in monitoring and controlling systemic risk and safeguarding the stability of the financial system as a whole. The Honduran securities market received far less support from the government than the banking sector, and as a result, was the most affected. By the end of the 1990s, trust in the domestic securities market was reduced substantially.

Oene Marseille Emir Nurmansyah The Finance Ministry of Indonesia has issued a new regulation clarifying its internal procedures for selecting foreign lenders in government procurement areas. Under this new regulation, the directorate-general of debt management would invite certain pre-selected international lenders to submit proposals to fund government procurement plans. The directorate would choose the bidder who offered the lowest cost on comparable loan packages. The directorate would initiate the bidding process by sending out requests for proposals to at least five qualified foreign lenders, determined to be the most suitable creditors. These prospective lenders' outstanding loans would have to fall within a permissible limit. In this regard, the government would consider the amount of outstanding loan these creditors have extended to the government's counterparty. The government would also look at the type and origin of the goods to be procured. The prospective lender closest to the goods' location would receive priority. Finally, these prospective lenders would have to have a track record of providing commercial loans to the government.

The frontier’s inaugural international bond sale required deal counsel to educate regulators and navigate local law restrictions

Yoshihisa Watanabe The amendment to the Real Estate Specified Joint Enterprise Act (Act) took effect on December 20 2013. According to a survey conducted by the government, while the value of securitised real estate acquired in 2012 by vehicles established for a securitisation purpose (Vehicles) was estimated at approximately JPY 3.3 trillion ($32.5 billion), the value of the assets acquired by Vehicles established under the Act was only JPY 0.16 trillion (4.8%). This compares to JPY 1.55 trillion for Japanese real-estate investment trusts (Jreits) plus other major tax-efficient structures known to overseas investors such as the GK-TK, GK-YK structure and the like (JPY 1 trillion) and TMK structure (approximately JPY 0.64 trillion). Based on these numbers, it is obvious that Vehicles under the Act have not been widely used so far. It had been considered that the major reason for this was the Act's permission system and the strict requirements for obtaining permission from the government (for example, a Vehicle had to have a licence under the Building Lots and Building Transaction Business Act and the capital amount of a Vehicle had to be JPY 100 million or more). Practically speaking, only major real-estate companies could be Vehicles under the Act. However, this meant that investors in Vehicles under the Act suffered from the business risks that arose from other businesses that were conducted by such companies. As a result, investors, especially overseas investors, tended to refrain from investing in Vehicles under the Act. However, nowadays Japan faces an increase in dilapidated buildings, particularly in rural areas, and enhanced earthquake safety is required in relation to old buildings. To introduce more funds from overseas and the domestic private sector for the rehabilitation and renovation of such buildings, it came to be believed that the easing of the requirements of the Act was needed. The major point of the current amendment to the Act is to replace the permission system with a notification system and, under a given set of conditions, allow special purpose vehicles (sole purpose companies) which are assured of bankruptcy remoteness, to be Vehicles under the Act. It is expected that investment from overseas and the domestic private sector in the rehabilitation and renovation of buildings will, as a result, be stimulated. Yoshihisa Watanabe

Last month’s Delaware court ruling could provide boards with a significant tool to defend against activist hedge funds

Mark Griffiths, Norton Rose Fulbright The past four weeks have been relatively quiet across the Middle East region with one notable exception. KING & SPALDING welcomed back a familiar face, recruiting Iraqi outfit Confluent Law Group's managing partner Zaid Al-Farisi. A former counsel in the US firm's New York and Riyadh offices, Al-Farisi will join the finance practice working across the Dubai and Riyadh offices. In South Africa, NORTON ROSE FULBRIGHT recruited Barclays Africa Group in-house counsel Mark Griffiths for its competition practice. CLYDE & CO has announced it will enter the market with offices in Johannesburg and Cape Town. The confirmed team includes five lawyers from Linklaters ally Webber Wentzel, though there are plans to increase this figure prior to launch. Initially the focus of the work will be dispute resolution and insurance but there are plans to expand this practice to include trade and infrastructure.