Update

Demystifying the de-listing process: guidance on section 238 fair valuation

In the past two years, there were 37 de-listings of Chinese companies in the US with a total deal value of more than US$33 billion. These de-listings are colloquially referred to as 'take-privates.' On any view, this is an enormous market and one that has caused a flurry of activity in the Cayman Islands, where a significant proportion of these companies are domiciled.

Given the significant sums at stake, two recent decisions of Mr Justice Segal in In the Matter of Shanda Games Limited have provided much needed clarity and further guidance on the correct determination of fair value under s.238 of the Companies Law.