Shan Shan Pfers Equity To Itochu To Enhance Its Core Competitiveness

Itochu Commercial Co., Ltd., Japan announced on 16 that it would acquire 28% stake in Shanshan Group.

Zheng Yonggang, chairman of Shanshan Group, revealed that the amount of equity pfer amounted to 10 billion yen (about 746 million yuan).

Zheng Yonggang said that the introduction of such an international top 500 multinational companies will help enhance the core competitiveness of the company and better participate in international competition.

The real agreement signed by the group and the Itochu commercial group is the "bet" agreement: 3 years later, if itoin's participation in the operation of the Shanshan Group failed to achieve its expected goal, the Shanshan Group could unilaterally bring forward the original price repurchase equity.

According to the announcement previously issued by Shanshan Group (600884, SH), Shanshan holdings pferred its 25% stake in Shanshan Group to Itochu Commercial Co., and pferred its 3% stake to Itochu (China) Limited.

After the shareholder's change, the controlling shareholder of Shanshan stock is still the Shanshan Group, and the actual controlling shareholder is still Zheng Yonggang.

"Our paction is not based on market value, but based on book value."

Zheng Yonggang warned, "the cooperation between the two sides is not a capital cooperation, and the capital chain of Shanshan is not intense. Cooperation is more important for joint efforts to become bigger and stronger."

Zheng Yonggang said that the introduction of the top 500 enterprises in the first place is to enhance the core competitiveness of the company.

Itou Tada should be able to share Itou Tada's 150 years' experience in both sales channels and technology.

Secondly, Itou Tada has an extraordinary place in the brand concept and system.

Itou Tada commercial company will have 4 people to enter the management of Shanshan Group. In the future, Itou Tada will participate in joint management.

Zheng Yonggang said frankly: "Shan Shan is still the management of the paternalistic system, and it is a fatal obstacle for the Chinese fir to embark on internationalization."

Not only is China interested, but also the Japanese side has taken a fancy to China's vast market.

Itou Tada, general representative of Chinese company Sanyama Nobuo, said Itou Tada's commitment to increase investment in China's food, textile and other consumer focused areas will not change. He will not rule out further acquisition of Shanshan Group's shares.

Wang Xiaonan: editor in charge