Domestic Retail Department Mergers And Acquisitions To Keep Improving

Keywords: mergers and acquisitions

Representing Enterprises: Chongqing department store

In October 2009, Chongqing department store offered 179 million 300 thousand shares to the business group and the new Tianyu Lake scenic spot at the price of 22.03 yuan per share to buy 61% equity interest of the new century department store held by the business group, and the 39% plan of the new century department store held by the new Tianyu lake view.

If the paction is completed, Chongqing department store owns 100% of the new century department store.

Before the paction, the business group has directly held 32.5% of Chongqing department store.

It is the largest shareholder of Chongqing department store, and the acquisition of new century department store is actually the merger of the two major department stores in order to avoid competition.

Data show that as of December 31, 2008, the net assets of the new century department store account for about 917 million yuan, while the estimated value of the paction is as high as 3 billion 950 million yuan, with a value increment of 3 billion 33 million yuan and an appreciation rate of about 331%.

The explanation given by Chongqing department store is that the estimated value is based on rough estimates made by the department stores in the new century and the trend of future development. The brand and outlets value of department stores in the new century is quite high, and quite a few outlets acquire business sites through leasing. In terms of their sales and profit scale, the assets of the department stores in the new century are smaller and the book net assets can not reflect their true value.

To enjoy such a high premium, or not just because of the new century department store's brand and network value is higher, the most important thing is its genuine profitability.

From the financial data, the new century department stores profit situation is good. In recent three years, the compound growth rate of operating income and net profit is as high as 25.43% and 17.70% respectively.

This paction will enhance the profitability of Chongqing department stores, but the company's asset liability ratio will increase.

At present, there are 29 department stores in Chongqing department store, with a total area of 460 thousand square meters, of which the operating area of its own property is about 210 thousand square meters.

Compared with the new century department store, the department stores of the company are more concentrated in the main urban area of Chongqing, and the department stores in the new century are more concentrated in the districts and counties of Chongqing.

Chongqing department store and new century department store are the most important competitors in Chongqing. Their main business and format are the same. They have relatively perfect network layout in Chongqing area.

Industry experts predict that after the acquisition of the new century department store, the sales volume in 2010 is expected to reach about 20 billion yuan, becoming the largest retailer in Southwest China, accounting for nearly 10% of the total retail sales of social consumer goods in Chongqing. Meanwhile, it owns the top 5 stores in Chongqing, and its market share and scale far exceed that of other retail businesses.

After the reorganization, the two sides are in the network layout.

Keywords: listing and financing

Representing Enterprises: Tianhong mall

In February 8th, the application of Limited by Share Ltd IPO of Tianhong mall was approved by the SFC.

Tianhong mall launched the A share listing plan in 2007. In April 25, 2008, at the sixty-fifth meeting of the securities and Futures Commission of the SFC in 2008, the application of Tianhong shopping center was rejected.

According to the 2010 Edition prospectus of Tianhong shopping malls, the company plans to issue 50 million 100 thousand shares in Shenzhen Stock Exchange, raising 1 billion 56 million yuan, and the total share capital after issue is 400 million 100 thousand shares.

The proceeds of the offering will be invested in 7 new shopping arcade projects, acquisition of some commercial properties, warehousing and processing center construction projects in Dongguan, Venice East Plaza, existing 3 shopping malls renovation projects and information management system construction projects, with a planned investment of 1 billion 56 million yuan.

According to the prospectus, the ownership structure of Tianhong emporium is rather special. Before the issue, 46.6% of the state-owned technology holdings of the state-owned enterprises were large shareholders, while the foreign trade enterprises of Wulong 44.3% were second, while the remaining 10% were indirectly owned by senior executives.

If the 50 million 100 thousand shares are issued and the impact of the pfer of state-owned shares is converted, the shareholding ratio of China aviation technology will be reduced to 39.5% after the listing of the company, and the trade of Wulong will be reduced to 38.75%, with a difference of less than 1%.

At present, the difference between the number of shares of air technology and Wulong trade is about 8 million 100 thousand shares. According to the relevant requirements of state-owned shares, as long as the number of shares issued by the company IPO exceeds 81 million shares, China Airlines technology needs to be pferred to 10% and its shareholding ratio will be lower than that of Wulong trade.

The first time the company will be denied, the total share capital is only 250 million shares, and the minimum need to issue 83 million 330 thousand shares. Before the two meeting, it has increased capital to 350 million shares, and the lowest issue amount to 50 million shares.

At the same time, in order to ensure the long-term stability of the controllers, the sponsors of the rainbow mall reached three "special agreements" after being listed as the largest single shareholder.

First of all, the Wulong trade pledge, without prejudice to its own interests, will grant irrevocable, unrestricted and gratuitous voting rights to 16% of the total shares.

Secondly, under the premise that China aviation technology does not reduce itself to less than the trading proportion of the five dragons, the latter should not exceed the former.

Finally, if Wulong trade wants to sell shares of the company, China aviation technology has the right of preemption.

Through the above arrangements, the company confirmed that CAC was the controlling shareholder and China Airlines at a meeting.

As of August 2009, Tianhong opened 35 direct chain stores in Shenzhen, Nanchang, Xiamen, Dongguan, Huizhou, Jiaxing, Fuzhou, Changsha, Beijing, Suzhou and Suzhou, with a business area of 848 thousand and 600 square meters, and managed 2 shopping centers by means of franchising.

Tianhong has been selected as China's top 100 chain enterprises for 8 consecutive years. It is the largest department store in Shenzhen and Guangdong with the largest sales volume and the largest number of shopping malls. It is also the first retail enterprise to introduce Lean Six Sigma, balanced scorecard and excellent performance management mode in China.

The official of Tianhong said that the goal of rainbow is to sell 100 billion in the national market, and at the same time, enterprises will speed up the layout of the Beijing market.

After experiencing the great potential of Beijing market, the target of "100 billion" in Tianhong shopping mall is likely to be realized through Beijing.

Key words: strategic layout

Representing Enterprises: Wangfujing department store

Facing the increasingly fierce competition and the imminent expansion of the international retail giants, since 1996, Wangfujing department store has been promoting the development of the department store chain across the country, realizing the pformation from the local enterprises to the national enterprises, from the haplotype enterprises to the chain, large-scale and diversified enterprise groups.

Beijing Wangfujing department store (Group) Limited by Share Ltd achieved operating income of 7 billion 835 million yuan in the first three quarters of 2009, an increase of 4.22% over the same period last year, and realized a total profit of 390 million yuan, an increase of 2.74% over the same period last year.

At present, the department store of Wangfujing has a large department store which has already opened and is about to open, including: Beijing department store, Beijing Dongan market, Beijing Changan shopping mall, Beijing double safe shopping mall, Guangzhou Wangfujing, Wuhan Wangfujing, Chengdu Baotou, Baotou 1, 2 shop, Baotou 1, 2 shop, Baotou, collect, and so on.

"China's retail market has matured after a long period of cultivation, and now it has come to a period of pformation."

Wangfujing department chairman Zheng Wanhe recently said: "in 2009, Wangfujing carried out two rounds of financing, financing 1 billion 120 million yuan, the first three quarters of net profit has reached 273 million yuan, an increase of 6.52% over the same period last year.

Last year, sales and profits of Western stores maintained a strong growth rate of 40~50%.

The reason is that

Keywords: mergers and acquisitions

Representing Enterprises: Shanghai Bailian

Recently, the 90% equity of Bailian East Commercial Building in Qingpu, Shanghai has been publicly pferred on the Shanghai property exchange. The pferor is Shanghai Bailian investment management.

Bailian shares is expected to take part in the share ownership and wholly owned the Bailian East Commercial Building in Qingpu. Bailian shares will become an integrated platform for the department stores of Bailian Group. Accelerating the integration of department stores will become an important task of Bailian Group.

According to the preliminary idea of Bailian Group's integration of department stores, it will integrate Bailian Group's department store format into Bailian joint stock, and its business will include general merchandise and shopping center of friendship stock.

Some market participants believe that the SASAC's Shanghai department store business may also be injected into Bailian shares.

At present, Bailian shares occupy 28% market share in the main 70 department stores retail sales in Shanghai.

In mid 2009, with the dust of Lianhua supermarket buying Hualian Supermarket, China's supermarket aircraft carrier officially surfaced.

It is understood that the merger of the two leading domestic retail enterprises has long been a foregone conclusion, but only a matter of time and manner.

Since the formation of Bailian Group in Shanghai in 2003, Hualian Supermarket and Lianhua supermarket have become competitors of one group, which is bound to solve the problem of competition by Bailian Group through a merger and reorganization.

Lianhua stock holding company Lianhua Supermarket bought 100% stake in Hualian Supermarket, Bailian Group and Bailian real estate.

After the completion of the acquisition, the latter became a wholly-owned subsidiary of Lianhua supermarket.

Lianhua Supermarket's total number of stores has reached 5268, which has become a real "big guy" in the domestic supermarket format.