In my opinion, there are two main reasons for the spin-off of Zhongtian Submarine Cable and its listing on the Science and Technology Innovation Board:
1. Zhongtian Submarine Cable needs more funds for development.
2. The original shareholders of Zhongtian Submarine Cable need to cash out.
Therefore, I propose a possible solution for management’s reference:
The current economic development background is that the state encourages enterprises to borrow money to develop the economy, and the loan interest rate is at a low point in recent years. therefore:
1. First of all, the group will set up a fixed increase of about 4 billion in listed companies, and a fixed increase of 340 million shares based on a 25% discount of the current market value (53 billion). (If you do not have sufficient funds, you can consider using the group for loans.) After the private placement is completed, the group owns about 1.1 billion shares of the listed company, and the holding ratio reaches about 30%, which solves the potential control problem.
2. The listed company uses the fixed increase of 4 billion to refer to the current market value of Dongfang Cable to repurchase all the shares in the hands of the original shareholders of Zhongtian Submarine Cable, realize 100% holding, clarify the equity relationship of Zhongtian Submarine Cable, and promise not to spin off Zhongtian Submarine Cable, and realize The market capitalization of listed companies increased.
3. About 4% of Zhongtian Submarine Cable’s shares are in the hands of Chairman Xue and his family, and about 1.6 billion is repurchased, which can be used to repay the loan debts generated by the fixed increase.
4. If the original shareholders do not want to cash out for the time being, they can also participate in the fixed increase, and the group will advance the funds first, and use the repurchase money to repay after the subsequent repurchase is completed, further reducing the group’s fixed increase debt.
5. Since Zhongtian Submarine Cable has achieved 100% holding, the listed company can make a loan to inject development funds into Zhongtian Submarine Cable, or the listed company can raise funds for the development of Zhongtian Submarine Cable as a whole. In this step, due to the clear ownership of Zhongtian Submarine Cable, the market value of listed companies has increased, and the group’s shareholding ratio in listed companies has reached 30%, the fixed increase can obtain far more funds than the spin-off and listing of ZTT Submarine Cable.
After this series of operations,
1. Zhongtian Submarine Cable was able to raise more funds for development.
2. The group has achieved a higher shareholding ratio at a lower cost (2.4 billion funds have realized a 7% increase in holdings in listed companies and a 5% increase in holdings in Zhongtian Submarine Cable), and at the same time realized equity appreciation.
3. The original shareholders of Zhongtian Submarine Cable have completed cashing out.
4. The 100% holding of Zhongtian Submarine Cable and the no longer spin-off of Zhongtian Submarine Cable expected by the secondary market have been met, improving the relationship between the group and investors.
$Zhongtian Technology(SH600522)$
There are 7 discussions on this topic in Xueqiu, click to view.
Snowball is an investor social network where smart investors are all here.
Click to download Xueqiu mobile client http://xueqiu.com/xz ]]>
This article is transferred from: http://xueqiu.com/1091372353/238729770
This site is only for collection, and the copyright belongs to the original author.