On June 15, 2015, National Integrated Circuit Industry Investment Fund Co., Ltd. (hereinafter referred to as “the industry investment fund”) signed an equity transfer agreement with San’an Optoelectronics Co., Ltd. (“San’an”), in which it was agreed that the industry investment fund would invest RMB4.8391bn in San’an in exchange for a 9.07% stake in the company. The fund would be used to support San’an’s integrated circuit business, especially the development of III-V group compound semiconductor devices. Following the equity transfer, the industry investment fund would become San’an’s second largest shareholder. 

The industry investment fund is a joint-stock corporate fund launched collectively by a number of institutions, including the Ministry of Finance, CDB Capital Co, Ltd., China Tobacco Corporation, and China Mobile Communications Corporation, with RMB98.72bn paid-in capital. The fund focuses on investment in integrated circuit chip manufacturing sector and aims to solve the difficulties in financing within the sector with market-based means. The combination of national strategy and market-based practice would hopefully push forward the growth of the sector. 

A Dacheng team led by senior partner Guo Qing advised the industry investment fund on the equity transfer. The team was responsible for conducting due diligence, issuing attorney’s opinion letter, and drafting documents related to the transaction.