"+PE Of Listed Companies": Innovation Or Confusion?

Starting from the partnership between Silicon Valley paradise and Da Kang animal husbandry in 2011, the Changsha paradise great health fund set up the first mode of domestic listed company +PE. Since then, a number of funds and listed companies have followed suit. This innovation, on the one hand, has opened up a new mode of cooperation between PE and listed companies, and has increased the path of PE exit mechanism. On the other hand, while meeting the demand of market value management of listed companies, some problems derived from the greed of capital and the blank of policy have already attracted the attention of all parties.

　　 The new mode is replicated quickly.

　　 Market booster The process of innovation has never stopped. After the formation of a new market model, it spreads like a virus, and the innovative mode of "PE+ listed company" is typical.

Silicon Valley paradise first created the M & a mode of "PE+ listed companies" in China in 2011. Behind this seemingly simple model is the "breathtaking leap" in Silicon Valley paradise and even in the development of PE in China.

In the M & a market, there is a high fever. PE agencies are frequently seen in the fixed growth plan of listed companies. This mode is also an attempt by many PE institutions and listed companies. For the two sides, PE has added a new way on the basis of the original IPO exit channel. The listed company, with the help of PE's professional capital operation, will achieve the goal as soon as possible, thus achieving the win-win situation of both sides.

Since 2011, such cases have emerged one after another. The mode of "listed company +PE" is also evolving. Taking Silicon Valley paradise as an example, the "PE+ listed company", which was first established at the beginning, set up the acquisition fund and evolved into PE to directly buy shares in the listed company to assist in mergers and acquisitions. In addition, Tiansheng new material "rental shell" incident.

A senior market person told reporters that after three years of development, PE institutions are becoming an important force for A shares to participate in the trend of mergers and acquisitions of listed companies. As a result of such simple and easy replication, various investment companies have mushroomed, and their strength and share of the market have also been uneven.

It is reported that this year, more than 60 listed companies of A share, less than 30% of the actual M & A cases after the establishment of the merger fund. Although the market is hot, there are many reasons behind the low success rate, but it also reminds investors, speculators and follow the great risks.

　　 Flavour Market Value Management For what?

An insider who declined to be named said that the innovative investment idea of "listed company +PE" just satisfied the listed companies in addition to giving you capital, but also to provide value-added services to them, help enterprises do a good job in "market value management" and bring market value to enterprises.

As a new thing, there are many arguments in the market. Some professionals in the interview pointed out that the new mode of cooperation between the listed companies and PE is bright and bright. In fact, there is a large number of "manufacturing" concepts to uplift the stock price, which facilitates the large shareholders to cash in.

Because in the merger and reorganization of the hot A share market, the cooperation between the "PE+ listed companies" is mainly to select the upstream and downstream enterprises in the industry chain, and propose the way of merger and reorganization intention. It is observed that in the two tier market, once the listed companies involve the concepts of mergers and acquisitions, shell buying and listing, emerging or hot spots, whether the implementation or not, the share price of listed companies will rise continuously after the announcement.

Take the combination of Silicon Valley paradise and Gao Xinxing as an example. As early as the end of August, there was a scandal between the two. In the evening of September 17th, Gao Xin formally announced that the company and Silicon Valley paradise signed the strategic cooperation and merger consultancy agreement in September 17, 2014. The agreement includes two sides, which will conduct in-depth cooperation in the field of capital operation activities such as mergers and acquisitions, aiming to professionally comb the company's strategic planning and acquisition ideas so as to seize the opportunity of industry integration and promote the rapid and steady development of the company. Although it is only a preliminary plan, Gao Xinxing has risen 30% before and after. In addition, Liu Shuangguang, the controller of the company, reduced its holdings of high emerging 2 million shares in September 25th. From September 17th to September 25th, the stock market of the new emerging two market rose 27%. There are senior shareholders who believe that the company executives can cash in the high position of their company stock, and the cooperation with PE brings an integral relationship with the vision of industrial integration.

Some analysts believe that this "bad" market value management, more specifically in the release of "good", pushing up market valuation for shareholders to cash in to provide convenience. Of course, behind almost every PE holding company agreement and the merger fund agreement, there is a paper or oral market value management agreement hidden behind it. And this agreement is like the two sides set up a "bet agreement", ultimately injured or buy two level market of small and medium investors.

　　 Unclear prospects

There is no limit to innovation, but it is not the shackles of jurisprudence and the lack of standards. The innovation mode of "listed company +PE" is no exception. Even covert operation techniques, once stepping on the line, it will reveal itself.

Recently been Shenzhen Stock Exchange Tiansheng new material that stopped is such an example.

Tiansheng new material announced in October 22nd after a month and a half suspension that the four main shareholders of the company, Lv Zewei, Sun Jian, Wu Haizhou and Xu Yi, signed the agreement with Hangzhou's equity investment partnership limited (limited partnership) recently. The four people will transfer the 20 million shares of Tiansheng new material (6.14% of total capital stock) to Hangzhou in the 7.89 yuan / share price. In addition, the four people also decided to entrust the shareholders' voting rights and related rights to the exercise of the 23.81% shareholding of the listed company to Hangzhou. After the completion of the transaction, Hangzhou Shuncheng enjoys Tiansheng new material equity shares that will reach 29.95% of the total share capital, thus becoming the controlling shareholder. Tiansheng new material controller will also be changed to Zhao Bing, the head of Hangzhou Shuncheng.

The PE "rented shell" listing agreement is also the evolution of a higher stage of "+PE of listed companies". Finally, the first case of PE "rental shell" listing aborted, Tiansheng new material revoked the relevant agreement signed by shareholders before voting.

Market analysts told reporters that the rental shell mode was stopped on the one hand touches the regulatory red line; on the other hand, it is also from the perspective of investors and other shareholders' rights and interests. After the success of the "rental shell", equity will change. The ultimate demand is to withdraw. The specialty lies in the capital operation rather than the PE operated by the enterprise. Whether it can really maintain the healthy development of the enterprise in the long run will always be a question.

From the results of the interview, PE is keen to choose companies that are easy to operate, such as Tiansheng new material, and at the same time, the cooperative listed companies usually have the ambition to make big industries. But there are also problems with motives such as "taking over" the company and so on.

The "PE+ listed company" mode is undoubtedly an innovation from itself, and an important tool for enriching the capital market. It is worth encouraging development. However, when it comes to illegal activities, it is imperative for regulators to give timely sword to uphold justice, reduce losses to investors and reduce the harm to the healthy order of the market.