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24 July 20222 minute read

DLA Piper advises Aesthetic Medical International on RMB170 million equity financing arrangements

DLA Piper has advised Aesthetic Medical International Holding Group Limited (Nasdaq: AIH), a leading provider of aesthetic medical services in China, on equity financing arrangements which will see affiliates of Lafang China Co. Ltd. (SHA: 603630, Lafang) subscribe to RMB170 million in new shares in AIH, and acquire RMB100 million in existing outstanding shares of AIH, from entities affiliated with AIH's founders Dr. Pengwu Zhou and Ms. Wenting Ding. The transaction is pending satisfaction of customary closing conditions, including approval by a majority of AIH's outstanding shares. Upon closing, entities affiliated with Lafang will hold more than a 51% equity stake in AIH.

AIH, known as “Peng’ai” in China, is a leading provider of aesthetic medical services. It operates through treatment centers in major Chinese cities, and also has a presence in Hong Kong and Singapore. Leveraging over 20 years of clinical experience, AIH provides one-stop aesthetic services, including both surgical and non-surgical aesthetic treatments, and other general medical and aesthetic services.

DLA Piper Corporate Partner James Chang, who led the transaction, commented: "We are proud to be advising AIH on this exciting transaction. The matter  demonstrates our continued commitment to the consumer industry, where we regularly apply our cross-disciplinary expertise to provide commercial and practical solutions to our clients."

The DLA Piper team was co-led by Beijing-based Corporate Partner James Chang and Hong Kong-based Head of Energy and Infrastructure (Greater China) Carolyn Dong. The partners were supported by Michael Huang, Senior Associate, Shanghai, and Associates Vera Chen, Beijing, and Qianshan Liu, Shanghai. Yang Ge, Capital Markets Partner, based in Beijing, provided US securities law advice.