Busen Shares Restructuring Failed Or Will Be Auctioned By Law

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The Limited by Share Ltd (hereinafter referred to as "Busen shares") has been having bad news, and the shares have been questioned by the Shenzhen stock exchange for the failure of judicial auction and reorganization. In addition, after the previous lawsuit, the declining trend of Busen shares has become more serious.

According to the world clothing shoes and hats net, in the evening of January 3rd, the Busen shares announced that Busen shares have recently received the Shanghai first intermediate people's Court (hereinafter referred to as "the Shanghai one central courtyard") on the "auction notice" issued by Huabao Trust Co., Ltd. and the controlling shareholder of the company of Chongqing an see Han time Technology Co., Ltd. (hereinafter referred to as "safe technology") in the execution of the Notarial Creditor's right documents, and so on. The one central court of Shanghai has issued an equity auction announcement in the "Ali auction judicature", which will open the auction to see the 22 million 400 thousand shares of technology held by science and Technology (accounting for 100% of the shares of the company held by science and technology, accounting for 16% of the total number of shares of the company).

The announcement shows that the starting price of the Busen stock is 227 million 800 thousand yuan (the price is the display price, the actual starting price is multiplied by the closing price of the first 20 trading days in February 16, 2019 and the total stock number), the margin is 20 million yuan, and the increase price is 1 million yuan and multiple.

The auction time is 10 February 16, 2019, 10 -2019 February 17th (except for delay).

This can be traced back to November 15, 2017. Zhao Chunxia, the legal representative of Busen shares and ANN technology, signed the "stock rights pfer and buyback contract", "stock pledge contract" and "guarantee contract" with the legal representative of Huabao trust, Zhu Ke Ping. The 22 million 400 thousand shares of Busen stock held by science and technology were used as collateral to obtain the project trust funds of Warburg trust.

Since then, the technology has failed to fulfill the obligation to buy back according to the requirements of Warburg trust, and now Busen shares have been forced to auction by law.

In addition, if the amount of the auction is insufficient to repay, the court will seal up, seize or auction, and sell the property that the executor sees in the corresponding value, such as technology, Zhao Chun Xia and so on.

Although Busen shares said in the announcement that the company and its controlling shareholder were different subjects, the company maintained independence with its controlling shareholders in terms of assets, business, finance and so on. Until now, the company's daily operation and production activities were normal, and the matter would not have a significant adverse impact on the normal production and operation of the company.

But economist Song Qinghui told reporters that this is not a positive sign for Busen's share development.

In addition, Zhao Chunxia's property may be sequestrated, seized or auctioned, which has increased the operational risk of Busen shares to a certain extent.

In 2018, Busen shares announced the termination of the takeover of Beijing Mccauley Technology Co., Ltd. (hereinafter referred to as "Mccauley"), and the 6 months of restructuring failed.

It is reported that Mccauley is one of the largest chain of communication products in China.

Mobile operators have reached a strategic partnership.

For the reasons for the failure, Busen shares explained that the long audit cycle and the uncertainty were not conducive to the formation of cooperation between the company and Mccauley as soon as possible.

At the Shenzhen Stock Exchange's inquiry into the failure of Busen's restructuring, the Shenzhen Stock Exchange challenged Busen's share to acquire a 10% stake in Mccauley with cash 20 million.

According to the announcement, in 2017, Mccauley's overall valuation was 120 million yuan, plus the March 2018 Beijing golden age cultural pmission, Limited by Share Ltd acquired 30% stake in when it cost 42 million yuan, corresponding to the valuation of 140 million yuan.

The Busen shares this paction on Mccauley valuation rose to 200 million yuan, the valuation is high.

Although Busen shares the view that Mccauley operates 51 Jingdong stores and Jingdong stores, the business situation is good, but it is hard to predict the actual price earnings ratio in the future.

Song Qinghui believes that the failure of Busen's stock restructuring is again a major negative impact on the company by the judicial auction. In addition, the stock price of Busen has fallen sharply since November 2018, and the risk of the company's operation is enormous.

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