There are only a handful of high-threshold participants in Gree Electric Equity Transfer Scheme

category:Finance
 There are only a handful of high-threshold participants in Gree Electric Equity Transfer Scheme


If we calculate the transfer price according to the announcement, the share transfer price will not be less than 39.857 billion yuan, and there are only a few buyers who can connect to Gree Electric Appliances. The plan approved by the SASASAC of Zhuhai should be based on the investigation of the 25 institutions that participated in the communication meeting before, and to a certain extent, it narrowed down the target audience. Zhang Jianfeng, Deputy Secretary-General of China Household Electrical Appliances Business Association, said in an interview with Beijing News.

As for whether or not Dong Mingzhu, who has always been a high voice, can take over, Zhang Jianfeng believes that according to the conditions given by the plan, Dong Mingzhu and his team are unlikely to take over.

On Aug. 13, Gree Electrics share price rose sharply, rising by more than 3% at one time. As of the close, its share price rose by 1.95% and its total market value reached 309 billion yuan.

Great Stories of Grey Electric Appliances Changing Owners

The evening of 8 April

According to the company announcement, Gree Group intends to transfer 15% of the total equity of Gree Electric Appliances through public solicitation of transferees. After the transfer is completed, the controlling shareholders and actual controllers of Gree Electric Appliances may change.

The evening of 14 May

22 May

Gree Group held a meeting of intentional investors in Zhuhai. Participants included 25 institutions such as Baidu, Houpu Investment, Temasek and Gaolu Capital.

According to the announcement issued by Gree Electric, the Zhuhai SASASAC has agreed in principle to publicly solicit the transferees plan for the state-owned equity transfer project of Gree Electric.

Gree offered the terms, Were completely out of business.

This time were completely out of action! The threshold of nearly $40 billion excludes investors like us, but it does not exclude the possibility of becoming secondary managers. Because for any large vendor, 40 billion yuan is not a small amount of money, need to continue to raise. On the evening of August 12, Li Ming (alias), head of a medium-sized organization, who participated in the meeting of Gree Electric Intention Investors on May 22, told Xinjing News.

Collection conditions show that if Gree Group refuses to accept the request for part of the shares transferred by the intentional transferee and makes a request for part of the shares transferred, it shall be deemed not to make the request for part of the shares transferred; if two legal entities form a consortium as the intentional transferee jointly, the minimum proportion of the shares transferred by any legal subject in the consortium shall meet the requirements of Shenzhen Securities. The relevant provisions of the Guidelines for the Handling of Share Agreement Transfer Business of Listed Companies on Stock Exchange shall be no less than 5% of the total share capital of the company. This means that even in a consortium of two legal subjects, the contribution of one of them is not less than 13.2 billion yuan.

Several sources close to Gree said that this provision means that at the level of first-level managers, the transferee of Gree Electric Appliances will be a single entity or a consortium. The transferee needs to take the transferees equity as a whole. Gree Electric Appliances will not become a company without actual controller to avoid over-decentralization of equity.

In addition, the announcement also mentions that the conditions that the transferee needs to meet include promoting the quality of listed companies and maintaining the sustained and healthy development of the company. The transferee who is in favor of promoting Zhuhais economic and social development has the resources to promote Zhuhais industrial upgrading or industrial integration, the ability to import effective strategic resources, the willingness to contribute to Zhuhais economic development, and the ability to put forward specific and effective measures or programs.

In fact, before that, Ali, Tencent, Jingdong, Foxconn and other companies were widely rumored in the industry to intend to take over the shares of Pangli Electrical Appliances. Despite these companiesdenial or comment, Ali and Baidu appeared at the investors meeting held by Gree Electric on May 22.

Liang Zhenpeng told Beijing News that Baidus acquisition of Gree Electric Appliances is more likely, because Baidu wants to do smart home, Gree Electric Appliances in recent years also do smart home such as mobile phones, refrigerators, washing machines. Internet companies may penetrate the industrial antenna into the hardware, want to do the real economy, buying Gree Electrical Appliances is a good choice.

The meeting of intentional investors held by Gree Group on May 22 has aroused great concern in the market. According to the announcement issued after the meeting, the investors included 25 institutions, including Houpu Investment Management Co., Ltd., Beijing Baidu Netcom Technology Co., Ltd., Shenzhen Windsor Capital Management Co., Ltd., Temasek Holdings-Tehran Investment Consulting (Shanghai) Co., Ltd., Gaolu Capital Management Co., Ltd.

Several industry insiders told Beijing News that there was a possibility for Houpu Fund to take over. There was news that Houpu Fund was interested in contacting the project.

Founded in 2007, Houpu Investment is a private equity investment fund focusing on China. Its recognized debut is the purchase of three-year convertible bonds by Hong Kong LungMing Investment Holding Company in 2008 in conjunction with Temasek, which holds iron ore projects in Mongolia. A year later, in January 2009, Houpu invested $650 million in 3.24 billion of Bank of China shares from the Royal Bank of Scotland. In 2009, Houpu led a number of investment institutions to take over the shares of CCB with a total transaction value of 7.3 billion US dollars, and then jointly invested 6.1 billion HK dollars to acquire 20.03% of Mengniu Dairy and 1 billion US dollars to subscribe to Minsheng Bank H shares.

Within three years of its establishment, Magnolia investment attracted market attention with a series of investments, but also aroused doubts. However, this did not prevent Houpu investment to continue to invest. Since then, we have invested in Mushroom Street, Millet, Tuan 800 Nets, Ulai Automobile, Honeycomb and so on.

In Li Mings view, several head private enterprises or capital are competing fiercely at present. The purchase price of nearly 40 billion yuan is a high threshold, excluding most investors who participated last time, but not excluding the Re-public capital raising of the head consortium, which has participated in the re-participation of small and medium-sized investment institutions intended to be transferred before.

Its hard to pay, but Dong Mingzhu has no chance to take over?

After the announcement of the share transfer of Gree Electric Appliances, there has been a voice in the market that the management of Gree Electric Appliances such as Dong Mingzhu and the second largest shareholder, Hebei Jinghai Guarantee Investment Co., Ltd. (hereinafter referred to as Hebei Jinghai) may become the biggest potential takeover party. However, according to Zhang Jianfeng, according to the conditions given by the scheme, the distributor system is a number of legal subjects, which do not meet the relevant conditions, and Dong Mingzhu and his team are unlikely to take over.

In addition, nowadays, in the view of the outside world, due to the large amount of transaction consideration, the Gree management and distributors headed by Dong Mingzhu are most likely to participate in the transfer, but the possibility of taking over the offer is greatly reduced. However, Zhang Jianfeng emphasized that according to the rules of listed companies, the final transfer of equity related matters need to be considered by the companys board of directors, as well as the approval of the CSRC, so Dong Mingzhu has a certain degree of autonomy.

In fact, in the list of intentional investors, there are no figures of Jinghai and its related companies in Hebei Province.

According to the enterprise survey of industrial and commercial information, Hebei Jinghai was established on August 18, 2006 with a registered capital of RMB 100 million. The legal representative is Guo Shuzhan and is also a member of the current Gree Electrical Appliance Board. Hebei Jinghais largest shareholder is Hebei Gree Electrical Appliance Marketing Co., Ltd. The parent company of the company is Hebei Guoao Investment Group Co., Ltd. The major shareholder is Xu Wei, Xu Wei is the son of Xu Zi, former director of Gree Electric Appliances. Xu was born in 1954 at the same age as Dong Mingzhu. From July 1997 to June 2011, he was the general manager of Hebei Xinxing Gree Electrical Appliances Sales Co., Ltd. and the director of Gree Electrical Appliances Co., Ltd. from June 2015. In October 2017, he was investigated by the SFC for violations of regulations such as sensitive period trading and short-term trading. Hand in your resignation report. Industry and commerce information shows that Beijing Hai, a company composed of Gree distributors, holds 8.91% of Gree Electric Appliances. The company has been regarded as Dong Mingzhus concerted actor by the outside world. Dong Mingzhu holds 0.74% of Gree Electric Appliances, and the total shares of both sides reach 9.65%. Chen Weicheng, a journalist of the New Beijing News, is a source of this article: Han Yukun_NBJ11142, the responsible editor of the New Beijing News.

According to the enterprise survey of industrial and commercial information, Hebei Jinghai was established on August 18, 2006 with a registered capital of RMB 100 million. The legal representative is Guo Shuzhan and is also a member of the current Gree Electrical Appliance Board. Hebei Jinghais largest shareholder is Hebei Gree Electrical Appliance Marketing Co., Ltd. The parent company of the company is Hebei Guoao Investment Group Co., Ltd. The major shareholder is Xu Wei, Xu Wei is the son of Xu Zi, former director of Gree Electric Appliances.

Industry and commerce information shows that Beijing Hai, a company composed of Gree distributors, holds 8.91% of Gree Electric Appliances. The company has been regarded as Dong Mingzhus concerted actor by the outside world. Dong Mingzhu holds 0.74% of Gree Electric Appliances, and the total shares of both sides reach 9.65%.

Chen Weicheng, a reporter for the Beijing News