Kirkland & Ellis and Sidley Austin have scored lead roles on Bain Capital’s cash injection into Chinese retailer Gome Electrical Appliances.
Kirkland Hong Kong-based partner David Eich advised Bain on the $630m (£319.53m) investment, while Sidley advised Gome on the deal using a team led by Hong Kong-based partner Constance Choy.
As part of the deal Bain has agreed to acquire Gome’s $200bn convertible bonds and will spend up to $430m underwriting a rights offering of new Gome shares, equal to 18 per cent of its share capital.
Kirkland has a longstanding relationship with private equity house Bain. Earlier this year Kirkland London office head Jim Learner advised the company as well as private equity house Clessidra Capital Partners on the acquisition of Italian company Cerved Business Information.
In 2007 The Lawyer reported (9 July 2007) on Kirkland cementing its relationship with Bain by advising the company on Samsonite’s $1.7bn buyout by CVC Capital Partners. Kirkland advised Bain as a major shareholder in the luggage company, with Learner leading the team on the deal.
Sidley advised Gome on its 2004 Hong Kong IPO.
As part of the Bain investment, the private equity house will gain three seats on the 11-strong Gome board.
Kirkland declined to comment, while Sidley was unavailable for comment.