Listed on mergers and acquisitions

Issuing time:2018-04-04 17:49

Recently, among the listed companies that announced the suspension of major asset restructurings or announced major asset restructuring plans, there were no shortages of new shares in the market. In recent years, with the adjustment of economic structure, listed companies have used capital platforms, integrated industries through mergers and acquisitions, coordinated industrial chains, and accelerated the pace of transformation and upgrading, and even many listed companies have “continued listing and mergers and acquisitions” and have continued to expand and transform.” Life and death speed." Insiders pointed out that the case of “mergers and acquisitions on a public listing” has continued to emerge, reflecting that the pace of the use of capital platforms by listed companies in the industry consolidation, industrial chain collaboration, transformation and upgrading is accelerating.

A listing on the merger

Recently, Keda issued a major asset restructuring plan, and plans to purchase 100% equity of Baosheng Automation for 618 million yuan while raising 172 million yuan for the cash consideration of this transaction.

And Kodak's IPO at the end of October last year announced the suspension of reorganization in February. In fact, in addition to Kodak, among listed companies that announced a major asset restructuring plan this year, they include new stocks such as Shengxunda, Guangxin Materials, Emperor Sanitary Ware and Zhaoyi Innovation.

More listed companies have planned multiple mergers and acquisitions within less than one year after the IPO. Take Jinuan Electric of the IPO last May as an example. On November 29 last year, the company announced that it plans to acquire 100% of the equity interest in Solar Energy by way of issuing shares and paying cash for 1.504 billion yuan. On May 16th this year, Golden Crown Electric issued an announcement on the progress of major asset restructuring, and plans to acquire all or part of the equity of Zhongxin Lixin and Hongtu Separation.

There are many new shares that have not yet completed their mergers and acquisitions or announced plans, but they have also been “on the road”. In April of this year, Xuan Ya International, the IPO only two months ago, announced plans for a major asset restructuring. On May 9th, Xuanya International announced the announcement of major asset restructuring progress, saying that the assets of the major assets reorganization are expected to be not less than 50% of the shares of Beijing Honeywell Network Technology Co., Ltd., and Beijing Honeywell Network Technology Co., Ltd. It is the operating entity of the live broadcast platform "Importer".

At the end of last year, IPO’s Zhongtong Guomai announced its suspension on March 13 this year because the company is planning major issues that may involve major asset restructuring. On May 8, the company stated that the subject of this transaction is Jilin Tongjian and Shanghai Co., Ltd., which will create 100% equity. Since then, the company has decided to terminate the acquisition of 100% of Jilin Tongjian. At present, the company is still advancing its efforts to acquire Shanghai to create 100% equity and raise matching funds.

The upsurge of "subsequent mergers and acquisitions" in the new IPO started in 2014. Insiders pointed out that on the one hand, many listed companies that have landed on A-shares in recent years are in the traditional industry. With the adjustment of economic structure, some of the new shares have the need to accelerate transformation or expand the main business through mergers and acquisitions; on the other hand, the policy environment has also changed. Objectively accelerated the pace of mergers and acquisitions of new shares.

Changjiang Securities believes that because of the 18-month restrictions on the financing of mergers and acquisitions, the demand for refinancing of new shares in the next few quarters may turn into demand for mergers and acquisitions. In terms of feasibility, by sorting out the project financing of listed companies since 2014, we can find that the funds raised are basically all used for the construction of projects related to the main business to promote the expansion and upgrade of main business, and this is through mergers and acquisitions. The method can also be achieved.

Accelerate expansion and transformation

Insiders pointed out that the case of “mergers and acquisitions on a public listing” has continued to emerge, reflecting that the pace of the use of capital platforms by listed companies in the industry consolidation, industrial chain collaboration, transformation and upgrading is accelerating.

The first is to acquire industrial integration through the acquisition of companies in the same industry. Taking Zhaoyi Innovation's planned acquisition of 6.5 billion yuan to acquire 100% equity of Beijing Fucheng, the announcement stated that both the listed company and the target company are mainly engaged in R&D, technical support, and sales of integrated circuit memory chips and their derivatives, and this transaction belongs to With the integration of high-quality companies in the industry, a good scale effect can be formed after the transaction is completed. At the same time, through the expansion of product categories of memory chips, and the application of products gradually into the private-class application market, the market share of listed company products will usher in further growth.

The second is to achieve industrial synergy by acquiring upstream and downstream companies in the industrial chain. Taking the imperial sanitary ware as an example, the company stated that as a company engaged in household and building materials manufacturing, it will be an inevitable choice through the channel layout or through the equity relations among various brands in the future. In this context, the company announced that it planned to acquire 9.68 billion yuan to acquire a 98.39% stake in Oushenuo.

The third is to achieve transformation and development through the acquisition of emerging industries. Take Xuanya International’s acquisition of Yingke’s live broadcast as an example. According to statistics, Xuan Ya International’s main business is integrated marketing communications services, which include perennial consulting services and project services. Yingke Live is the leading company in China's emerging live broadcast industry. According to statistics, as of the end of 2016, there are about 200 live webcasting platforms, with a market transaction size of approximately 35 billion yuan and 200 million users. The acquisition of Yingjia Live to enter the emerging live broadcasting industry will undoubtedly benefit the transformation and development of Xuan Ya International. Reporter Ren Mingjie Intern reporter Dong Tian

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