China Securities Regulatory Commission pilot convertible bonds as a payment tool for mergers and acquisitions

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 China Securities Regulatory Commission pilot convertible bonds as a payment tool for mergers and acquisitions


In recent years, the Securities Regulatory Commission has continued to promote the market-oriented reform of mergers and acquisitions, actively supporting the development and growth of state-owned and private holding enterprises through capital market mergers and acquisitions. In June 2014, the Securities Regulatory Commission revised and promulgated the Measures for the Management of Major Asset Restructuring of Listed Companies, stipulating that listed companies can issue convertible bonds to specific targets for purchasing assets or merging with other companies. The person in charge pointed out that the targeted issuance of convertible bonds by Listed Companies in M&A and reorganization as a payment tool is conducive to increasing the negotiation flexibility of M&A transactions, providing a more flexible interest game mechanism for transactions, effectively alleviating the cash pressure of listed companies and the dilution risk of major shareholdersequity, and enriching the financing channels of M&A and reorganization. Avenue. Recently, according to the market situation, many listed companies have actively studied the introduction of directional convertible bonds in mergers and acquisitions, and some companies have put forward practical plans. In the next step, the SFC will continue to play the role of market mechanism, continue to study and comply with the demands of market participants, and create conditions to support enterprises to optimize resource allocation through mergers and acquisitions, so as to achieve high-quality development. Source: China News Network Author: Chen Kangliang responsible editor: Ji Ke _b6492

In recent years, the Securities Regulatory Commission has continued to promote the market-oriented reform of mergers and acquisitions, actively supporting the development and growth of state-owned and private holding enterprises through capital market mergers and acquisitions. In June 2014, the Securities Regulatory Commission revised and promulgated the Measures for the Management of Major Asset Restructuring of Listed Companies, stipulating that listed companies can issue convertible bonds to specific targets for purchasing assets or merging with other companies.

The person in charge pointed out that the targeted issuance of convertible bonds by Listed Companies in M&A and reorganization as a payment tool is conducive to increasing the negotiation flexibility of M&A transactions, providing a more flexible interest game mechanism for transactions, effectively alleviating the cash pressure of listed companies and the dilution risk of major shareholdersequity, and enriching the financing channels of M&A and reorganization. Avenue. Recently, according to the market situation, many listed companies have actively studied the introduction of directional convertible bonds in mergers and acquisitions, and some companies have put forward practical plans.

In the next step, the SFC will continue to play the role of market mechanism, continue to study and comply with the demands of market participants, and create conditions to support enterprises to optimize resource allocation through mergers and acquisitions, so as to achieve high-quality development.