Wuhan'S Commercial Restructuring "Three Missing One": The Announcement Of Exit From The Company

Wuhan, which lives in the "nine provinces and thoroughfare", has always been the center of Hankou.

With the help of capital market, Wuhan business has already formed A, Zhong Bai group and Hubei military business.

Now it's been more than a month now.

Reorganization is blocked

The A announcement of the company said that due to the complex interests involved in the reorganization plan, although the company and the Wu Shang Lian had actively communicated with the relevant parties during the suspension of the company's stock, they could not reach a consensus, so they could not complete the essential elements required for the reorganization plan.

It is proved that at present, the relevant conditions of Wu Shang Lian's implementation of a major asset restructuring case without precedent are not yet ripe, and the major asset reorganization is suspended.

The company's stock will resume trading on that day.

This announcement means that the reorganization of three commercial listed companies in Wuhan encountered resistance.

It will take at least three months for the reorganization of A to restart.

In April 14th of this year, when A, Zhong Bai group and Wuhan merchants suddenly stopped trading, the market was full of expectations.

"It is time for Wuhan's three commercial listed companies to be restructured.

The three sons of a Laozi door do the same thing, which is not regulated by the regulation of listed companies.

At the shareholders' meeting in Wuhan in May 17th, the general manager of Wu Shang Lian and Wang Aiqun, chairman of Wuhan Zhong Bai (now renamed Zhong Bai group), talked about the background of the reorganization suspension, and gave investors a very popular explanation.

Reporters learned that although there was a dispute between Yintai and Hubei merchants in the event of a sudden suspension, it was only one of the factors. The real restructuring background was to solve the problem of competition between three commercial listings in Wuhan.

It is understood that as early as May 17, 2007, when the controlling shareholder of the three listed companies in Wuhan was founded, Wu Shang Lian made a clear commitment in the relevant plan submitted to the China Securities Regulatory Commission to gradually integrate three listed companies in three years and eliminate competition among the same companies.

By May last year, the three year commitment period had arrived, and the Wuhan municipal government and the Wu Shang Hui once again promised the CSRC to solve the above problems in August this year because of the failure to complete the commitments on time.

If we fail to make a promise this time and lose faith in the regulatory authorities, the development of the three listed companies in the capital market will be affected. The A rights issue and the private placement of Wuhan merchants will also be affected.

Therefore, the Wuhan municipal government chose this opportunity to start the reorganization of the three companies.

Newspaper reporters also learned that the Wuhan business restructuring is the leading level of the relevant departments of the Wuhan municipal government.

According to the person concerned, after the suspension of the three companies, the intermediary quickly launched a due diligence investigation of the companies.

Because, according to the relevant department regulations, the time limit for the suspension of major asset reorganization is also limited, and it is impossible to stop indefinitely.

The relevant departments in Wuhan are also very concerned about how to identify the financial advisers and relevant intermediaries responsible for the reorganization.

The restructuring hired three brokerages to be reconstituted financial advisers, and three of them focused on one company.

But there is a general coordination, which is Haitong Securities.

Because Haitong Securities has served as an intermediary for restructuring and integration of Bailian, Shanghai, and has some experience in business restructuring.

This time, Haitong Securities is also responsible for the due diligence investigation of Zhongbai in Wuhan. CITIC Securities is responsible for the A rights issue of the company, so it is responsible for the due diligence investigation of A, while the Changjiang Securities is launching a private placement for Wuhan Zhongshang, and is responsible for the due diligence investigation of Wuhan Zhongshang.

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Two-in-one?

Three, the company suddenly stopped trading, plus the previous Yintai brand A, and the reorganization of three commercial listed companies in Wuhan naturally became the focus of market attention.

Now, the A reorganization of the company has confirmed that the merger of the three companies into one "three in one" solution will not work. Will the "two in one" plan appear in the reorganization plan of the other two companies?

"Although there is a lot of speculation about the restructuring of the company at present, it is not easy to find a reorganization plan that is in line with the interests of all parties due to the complexity of the equity relations of listed companies."

A company executive admitted to the China Securities Journal reporter.

"If it's easy, the reorganization will go ahead, and it will not drag on until now."

He added.

How to plan a reorganization plan that can be recognized by all parties in the market is no doubt a difficult problem. It lies in front of the relevant decision-makers of the Wuhan municipal government, and is also a test to the relevant intermediary agencies.

Obviously, the final restructuring plan must take into account the interests of all parties: whether it will affect the operation of the company, the interests of shareholders and the interests of tens of thousands of employees. At the same time, it should also take into account the impact of industry monopoly on commodity prices and the price and earnings ratio after restructuring.

In fact, as early as 2007, when Wu Shang alliance became the controlling shareholder of the three listed companies, the restructuring plan of three commercial listed companies in Wuhan had already aroused the discussion and concern of the market.

The original intention of Wuhan's establishment of Wu Shang Lian is to expand and strengthen Wuhan's business and resist the invasion of foreign capital.

Shanghai's "Bailian model" was under the special attention of Wuhan. The senior officials of Wuhan municipal government also organized relevant personnel to study in Shanghai.

To some extent, the formation of Wu Shang alliance is to create a "Bailian model".

Founded in 2003, Shanghai Bailian Group integrates four large commercial groups in Shanghai, and has 5 listed companies, becoming the largest commercial aircraft carrier in China.

At that time, there were many conjectures about the reorganization plan of three commercial listed companies in Wuhan. One of the main designs was the integration of the formats: separating the department stores and the supermarket businesses of the three companies, and building two listed companies by department stores and supermarkets, leaving the shell resources of a listed company.

However, this seemingly intuitionistic and feasible scheme does not have much practical operational possibility.

The conjecture of "three in one" is also one of the market discussions, integrating three listed companies into a commercial "aircraft carrier", but this scheme has been questioned from the very beginning.

Dr. Ye Xueping, an economist at the Hubei Academy of Social Sciences, believes that Wuhan's status as a business today is the result of full competition. If three listed companies merge into one, they may go downhill because of the lack of competition.

Now that the company has temporarily withdrawn from the reorganization, the Sino 100 group and the Wuhan Chinese Chamber of Commerce will not be merged into one. Many people believe that the "two in one" plan has certain operability. If A can finally pfer the controlling shareholders through the introduction of strategic investors, that is, Wu Shang Lian is no longer the largest shareholder, thus eliminating the problem of competition in the same industry, and also conducive to the formation of healthy business competition.

However, this plan is not bound to be plain sailing in the course of operation.

The exit of A is proof.

An investment bank said that Wuhan's business restructuring to find a perfect solution may be a delusion, only to find a relatively feasible solution.

Yintai variables

Since the first time in January 6, 2006, the "Yintai Department" has launched several times to raise the price of A, especially since March this year. It has forced Wuhan's state-owned assets to look for concerted action.

At present, Yintai is maintaining a weak shareholding gap with the largest shareholder. "Yintai" has a total stake of 24.48%, which is only 0.19% less than that of Wuhan's State-owned Assets Department.

"Yintai" was originally introduced into Wuhan by A as a strategic investor, but the honeymoon period of both sides is very short.

From 2005, "the introduction of wolves into the house", the A and Wuhan state owned departments have never been more relaxed. In the face of every silver medal, every time they only have the ability to resist passively, and the vision of business integration that the market looks forward to, and even the establishment of the Wu Shang alliance, is also fading away in the passage of time.

Yintai always focuses on opportunities that may arise in Wuhan's commercial reorganization and integration, which is a force that can not be ignored in the process of Wuhan's business restructuring.

The opening of Wuhan's commercial restructuring has finally opened up. It means the greatest opportunity for Yintai to come. Even if it can not become the largest shareholder of A, it can also make its voice in the reorganization.

Any restructuring plan that will help the listed companies become bigger and stronger will bring the value added of their shares. On the contrary, any voting plan that is not conducive to the development of listed companies will be voted down by Yintai.

Yintai keeps increasing its business and raising its cards. It is precisely the footsteps of Wuhan's commercial restructuring that are getting closer and closer.

The current situation of Yintai is that it should be a winner and a winner.

Will Yintai become the ultimate strategic investor? Who will be the new strategic investor? Will Yintai be excluded from the strategic investors? Will the voting power of Yintai give rise to an unexpected story in the reorganization process? This question mark seems to confirm why the A of the company is going to suspend its restructuring. At the same time, it also means that the reorganization of A, which is under the stalemate, will not be smooth sailing.

As for Wu Shang Lian and Wuhan state owned assets, it has gradually realized that in the war of defending A in the past years with Yintai, it is only by respecting rules and respecting the market that we can achieve our best interests, so we have launched the long awaited reorganization of the market.

This is a challenge and a new opportunity to reshape the business ecosystem in Wuhan.

Although the accession of Yintai has brought variables to Wuhan's business restructuring process, all cards under the market rules should be respected.

What the parties should do now is to compromise with each other and seek a way to win.