Starting Shares To Be 1 Billion 600 Million Full Control Zawc Technology To Help Channel Rapid Expansion

Less than a month after the completion of the acquisition of Zhui technology 11.43%, the initial shares have recently issued a plan to fully control Zhui technology, thus launching the first major asset reorganization since the listing of the company.

Starting in May 9th, it announced that it would buy the 88.5714% stake in Zhui technology by issuing shares, convertible bonds and cash, initially priced at 1 billion 594 million yuan.

Adding convertible bonds into payment is more flexible.

According to the reporter, in the past, when a major asset reorganization, a listed company usually purchased assets with additional cash plus cash, and the acquisition of Zhui technology equity, the initial shares were issued in the form of issuing shares, convertible bonds and cash payment. In addition, in the collection of matching funds, the company will also adopt two ways, namely, directional issue shares and directional convertible bonds.

The announcement shows that the price of the newly purchased shares will not be lower than the 90% of the average price of the company's stock paction on the 120 trading days before the price fixing date. It has been determined by the trading parties to be 8.51 yuan / share.

The total share capital of the initial shares is 474 million shares, and the controlling shareholder Hongkong start International Group Co., Ltd. holds 251 million shares, accounting for 52.94%.

According to the reporter estimates, if the acquisition of Zhui science and technology shares are all calculated by issuing shares, the number of additional shares will exceed 187 million shares, and the original shareholders will be substantially diluted.

"For the M & a side, the use of convertible bonds in mergers and acquisitions is partly to reduce some investment risks in mergers and acquisitions," Chen Jiezhong, an associate professor at Zhejiang Ocean University's School of economics and management, told reporters. "At present, the listed companies still use the way of additional and cash purchases in mergers and acquisitions, but a large number of additional shares may lead to dilution of shares. The latter will bring a lot of financial pressure to the listed companies, which is also not conducive to the integration after mergers and acquisitions, and the adoption of convertible bonds will play a regulatory role."

In November 1, 2018, the securities and Futures Commission said it would support the development of listed companies through pilot oriented convertible bonds. It is understood that in March 1, 2019, the first announcement of the crab's shares of ctencent announced that the company issued convertible bonds, shares and cash to purchase assets and raised matching funds, which had been approved by the SFC.

In Chen Jiezhong's view, whether the holders of convertible bonds exercise the right to pfer depends mainly on their tolerance to risks and whether they are optimistic about the future development of the company. If they are not optimistic about the future development, they will be more inclined to cash in.

The initial shares also mentioned in the plan that the convertible bonds, shares, cash payments and payment quantities of the trading parties have not been determined. After the completion of the audit and evaluation work, the parties to the paction will be determined through consultation and reproduced in the restructuring report.

Acquisition of cross-border electricity providers help channel rapid expansion

According to reporters, zexhui technology is mainly engaged in cross-border e-commerce export business, through fast selling, Wish, Shopee, Amazon, eBay and other three cross-border e-commerce platform, will sell goods directly to overseas terminal consumers.

According to the plan, the operating income of Zhui technology in 2017, 2018 and the first three quarters of 2019 was 1 billion 756 million yuan, 1 billion 755 million yuan and 530 million yuan respectively, with net profit of 76 million 153 thousand and 400 yuan, 74 million 390 thousand and 700 yuan and 17 million 553 thousand and 100 yuan respectively, and the results were relatively stable.

It is reported that there is no performance compensation undertaking in the purchase plan. For this reason, starting from the stock side, the paction has not yet been completed, and the paction has not yet signed a specific "profit forecast compensation agreement".

As a starting share of children's wear and children's shoes operators, this acquisition or hope to push products overseas through Zhui technology, and further expand overseas markets.

Wu Jianjun, director of starting shares, told reporters that the acquisition of Zhui technology helps the company to realize the vision of "serving the global children" and further enhance the brand awareness and market influence of the company in the world, which is in line with the development direction of the company strategy.

For the company's marketing network construction, Wu Jianjun also said that the initial shares are now based on the comprehensive evaluation of the economic development level, residents' income level and consumer preferences of various cities, and further plan the number and scale of supporting direct outlets in the region.

It revealed that the future stores will be dominated by shopping centers and urban complexes.