Grand Game Backdoor Cashmere Industry Returns To A Share Road Long

　　 Medium share The privatization team has added new members. In March 17th, Jiayuan announced in a statement that the special committee of the board of directors to assess privatization plans was completed. Wind statistics show that at present, 22 of the 26 private shares have been privatized, and 4 are being privatized.

"Choose the new capital market to be listed again." As is currently being promoted in the Shanda game backdoor A share company cashmere industry, more and more stocks are ready to return to the A share market. However, China's stock return to A shares must take three steps, including privatization, lifting of the red chip structure and backdoor A shares. Every step is not easy. Prior to this, the Peking University thousand square and China security have been privatized respectively.

A new round of market delisting or coming

"Privatization is going well." The responsible person of Shanda game confirmed to reporters in March 17th that Ningxia eida, Ningxia cashmere industry, Dongfang Hongtai (Hongkong), Tomo Hiroji (Hongkong) and Hao Ding international reached a consortium agreement in March 16th, and proposed a privatization plan for Shanda. This means that the grand game is a step closer to completing the privatization of A shares.

In January 27, 2014, the consortium headed by Shanda group and Chunhua capital proposed a non restrictive privatization plan to Shanda game, which is to complete the privatization of Shanda games with the US $6.9 per share depository stock. Since then, members of the consortium have undergone many changes.

Shanda is just the beginning of the return of stocks in the new round of online games. At the beginning of this year, the perfect world also announced that it received the $20 privatization proposal issued by Chi Yufeng, chairman of the company in December 31, 2014. company We have invited Huaxing capital, Dao Heng and Dao Heng Securities as financial advisors to appoint Shida international law firm as a legal consultant to evaluate the chairman's invitation scheme.

Giant network, Shanda game, perfect world, and ninth cities are the best players in the early US listed game companies. Now the giant network is privatized, the grand game is privatized, and the perfect world also proposes privatization.

Not only online games companies, but also other companies in the other sectors are also privatizing. In view of the privatization invitation of $3.58 per share ($5.37 per share depositary stock) received by VastProfit in early March, Jiayuan announced that it had set up a special board of directors to evaluate the scheme in March 17th.

The upside of valuation and performance is the main driving force behind the return of stocks. Analysts pointed out that since 2014, the stock price has fallen, far below the share price of similar companies in the US market, much lower than that of A share companies, while most of them are leading companies in the domestic industry.

Privatization is a long road.

It is probably the current mainstream that stocks return to A shares to seek valuation recognition. However, insiders pointed out that the motives of a company considering privatization are usually complex and multifaceted, considering both the overall market situation and the company's business considerations as well as the future strategic planning of the company.

Privatization is not simple. According to the requirements of the US regulators, the privatization of shareholders should be done in cash. Because the acquirer must provide the small and medium shareholders with a premium based on the current share price, it may achieve the purpose of repurchase shares, which means that the financial pressure of shareholders will be doubled.

"When the United States goes public, it needs to pay a lot of fees from intermediaries, and the same is true when delisting." CFO, a China stock sharing company, told reporters that this is why many delisting companies need funds from the consortium or apply for loans from CDB.

Insiders also said that privatization needs to consider the views of independent directors. If the independent directors raise objections, it is very difficult for enterprises to withdraw from the market. Moreover, once privatization schemes are put forward, the possibility of companies being short of institutional attacks will increase.

The first batch of privatization delisting of China's Tai Fu electric encountered citron's shorting. In June 16, 2011, citron reported that the privatization of Tai Fu electric was "virtual" and President Yang Tianfu was "suspected of fraud" and so on. The stock price of the company fell more than 5 on that day. In order to successfully complete privatization, Yang Tianfu spent $40 million to hire Goldman Sachs and Morgan Stanley to prepare information in accordance with US law, and applied for a loan of 400 million dollars to the state bank, and finally completed privatization in 13 months.

According to the insiders, it may take about 4 months to form a special committee from the company and to hire consultants from the independent special committee to complete the final merger process. From the perspective of the current situation of privatization, few companies can finish the project in a period of time, usually taking nearly a year or even longer.

Return to A shares have joy and sorrow

A shares of Bao Guang shares issued a notice of major asset restructuring in December 16, 2014 evening. As the original reorganization plan involves the demolition of the red chip structure, the creditor bank of Beijing Rongchang airlines and the underlying assets failed to reach agreement on the issue of equity pledge, and it was temporarily unable to complete the demolition of the red chip structure on schedule, resulting in the implementation of the original scheme blocked.

The actual controller of Bao Guang shares is Yang Tianfu, chairman of Tai Fu electric. When Yang Tianfu was in charge of Bao Guang shares, the market expected to injecting Tai Fu's electrical assets. This time, because of the blocked structure of the red chip, Bao Guang's main business is to buy Jewellery's Hengxin Zheng Longzi company.

According to the relevant regulations, the stock market is currently adopting the red chip structure, which is usually referred to as the VIE structure of the stock market. The two tier or multi-storey Off Shore Company is set up. The shareholding structure is extremely complex, but the main operation is in the country. This means that a large number of stock taking companies are actually foreign capital. According to the relevant regulations, the shareholding ratio of a single investor of a A company to a single listed company shall not exceed 10% of the total number of shares of the listed company; the sum of shares held by all overseas investors to the A share of a single listed company shall not exceed 30% of the total shares of the listed company; if a single shareholder exceeds 10%, the Ministry of Commerce shall approve it. This will increase the difficulty of the share company's backdoor A shares. Recent reports say that Average share The media is going to backdoor listing, which will set up a new T1 to be listed. The original shareholder of the company will hold a 80% stake in T1 company through FocusMedia (China) HoldingLimited (FMCH).