Yintai Moves Towards Privatization To Create New Retail Templates

According to the world clothing and shoe net, after three years of investment, Ali must regard Yintai as a template for practicing the new retail concept.

yesterday

Alibaba Investment Limited, a wholly owned subsidiary, announced that a wholly owned company, Shen Guojun, founder of Yintai business (Group) Co., Ltd. requested the intime board to submit to shareholders the agreement on privatization through agreement arrangements.

Suggestions.

Ali said that the proposed paction reflects the strategic intention of Ali group to help the pformation of the physical retail industry with large consumer groups, rich big data and technology.

But in the industry view, the offer of privatization to Yintai business, or Ali will sprint in the future.

The layout is important.

Yintai moves towards privatization

According to the privatization proposal, the joint offer made by Ali and Shen Guojun company will purchase Yintai business plan shares at the price of HK $10 / share, which is about 53.59% higher than the average closing price of the last 60 trading days, which is about 42.25% higher than the 7.03 market price of the last trading day before December 28, 2016 suspension.

The maximum amount of cash required to complete the proposed exchange is HK $19 billion 800 million (about 17 billion 700 million yuan), and the joint offer is paying cash requirements or external debt financing.

At present, Ali holds 27.82% stake in Yintai business, and Shen Guojun holds 9.17%. Both sides hold 37% of the shares issued by Yintai business.

After the completion of the paction proposal, Ali and Shen Guojun accounted for the proportion of the issued shares of Yintai business increased to 73.73% and 16.21% respectively, and the total shareholding ratio of both sides reached 89.94%.

According to the proposal, Yintai commerce will cancel its listing status.

With the development of mobile Internet applications, the separation of online and offline consumer experience has become a past tense.

Alibaba said that the huge change brought by the mobile Internet enabled Alibaba group to cooperate with entity retailers to integrate the online and offline consumer data through the "membership links", optimize the shopping experience of consumers through the "service links", and enhance the stock growth through the "goods pass".

Ali is working with offline retailers to restructure traditional formats and innovate consumer experience.

Create new retail templates

In fact, in October 2013, Ali announced the strategic cooperation with Yintai, initially exploring the O2O mode. After that, Ali became the largest shareholder of Yintai business, and Yintai has become the new base of the retail business.

It can be noted that in the last two years of the "double 11", every time there is Yintai.

The form of cooperation between Ali and Yintai is mainly reflected in marketing, payment, online and offline business, and AR interactive games.

In December 2015, Ali organized the brand to the Yintai group, including yinmen, David, Bella, seven grid, including 10 women's clothing and children's wear brand, and became the first batch of cooperative brands to enter Yintai.

In January last year, Ali's first project, Yintai department store Xiasha factory, was officially opened, and the manager of Hangzhou Xiasha Factory Sales Department of Yintai Department has said that the 4 days after the opening of the store, the mall accepts more than 200 thousand customers.

Although the cooperation between Ali and Yintai has reached a close relationship, it seems that in the industry, the completion of the privatization of Yintai business means that Ali will have more control over Yintai.

Ye Zhirong, an independent consultant of the billion power network, said in an interview with reporters that Ali's new retail concept has been heated up, but there is no specific case to present this concept. Therefore, a fully controllable test field is needed as a template for the new retail layout.

Internet expert Liu Xingliang said that Yintai privatization showed Ali's determination to go out online on its own path.

Intime cooperation with Ali was very close, but after completion of privatization, Ali will be able to perform better operation and control.

Although Ali has no experience in offline shopping arcades, its original team will become an important complement to the layout of Ali O2O.

Dissatisfaction with market valuation

Liu Qi, director of investment in Cci Capital Ltd of Beijing Shi Shi Huixin, believes that the reasons for listed companies to choose privatization delisting are mostly two points. On the one hand, the company's share price is seriously underestimated. It may also be due to the confusion of internal ownership of the company, and the situation of the former is more appropriate for Ali's offer of privatization.

Yintai is moving towards privatization. On the one hand, it has the consideration of the future retail layout, and also has the factors to further release Yintai's commercial value.

According to the announcement issued by Yintai business, due to the low liquidity of share trading, the listing platform is not enough to serve as the source of capital for the company's business and growth.

In fact, Ali also staged a Hong Kong stock market delisting drama.

When the Hong Kong stock market was delisted in 2012, Alibaba repurchased shares at a price of HK $13.5 per share, which was privatized. At that time, the total share capital was about 5 billion shares, and the total market value of the delisting was about 67 billion 500 million Hong Kong dollars. At that time, the price of privatization offer was 55% higher than the average closing price of 10 trading days before the announcement, and the market value before the suspension was about 46 billion Hong Kong dollars.

In the US stock market, the issue price is US $68 per share.

As of the opening of the first day of the market, Alibaba's share price surged 25.89 dollars to $93.89, with a market value of $231 billion 439 million.

"Hong Kong stock market stock market circulation is often very extreme, on the one hand, the listing threshold of enterprises is relatively low, and funds for the world are more conducive to corporate financing, but many enterprises are undervalued and unable to achieve the high liquidity premium in the A share market."

Liu Qi said.

Ali's new retail layout actually touches down the line, compared to Sanjiang's shopping in favor of Shang Chao and Suning, which has a mature store standard. The shopping center located by Yintai business has a more diverse application scenario for Ali test line.

Ye Zhirong believes that if Yintai business is a listed company, it may also consider the pressure of financial reports and the noise of other shareholders. After privatization, it will have more free deployment space.

Just at the end of 2016, the new economy proposed by Premier Li Keqiang at the executive meeting was part of the real economy, which injected a strong heart for the new economic development represented by "online shop".

At the same time, the premier pointed out that the traditional industries, especially the real economy, should be better adapted to the economic pformation with the vigorous force of the new economy, new formats and new kinetic energy, so as to enhance competitiveness and better satisfy the increasing consumption demand of the people.

In addition, last year's "double 11" day, the general office of the State Council issued the "opinions on promoting the pformation of physical retail innovation", encouraging online and offline dominant enterprises to integrate market resources through strategic cooperation, cross shareholding, mergers and acquisitions, and so on, and cultivate a new market entity that combines online and offline development.

Alibaba CEO Zhang Yong believes that the economy has no entity and virtual distinction, only the old and new.

If we ignore opportunities, we will inevitably be marginalized or even eliminated.

If we integrate the power of mobile Internet, real-time user data and technology to enhance operational efficiency, entity retailers can create new value for consumers.

Ye Zhirong said that Ali's idea of using the electricity supplier technology and means to guide the pformation of the entity retail business is worthy of recognition.

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