On May 15th, Changyuan Group released the report on the company's tender offer for the Gree Group. The report shows that Gree Group expects to pay RMB 19.80 per share to the shareholders of Changyuan Group at a price of approximately 14% over the pre-suspension stock price premium. The bid for 265 million shares will require approximately 5.246 billion yuan, accounting for 20% of the total shares in Changyuan Group.
On the afternoon of the same day, Chairman of the Changyuan Group Xu Xiaowen said in an interview with the Securities Times that the two parties had conducted full negotiations before. The Gree Group mainly looked at the development of the new energy vehicles and intelligent equipment business of the Zhongyuanchang Group. The management welcomed Gree. Group shares, Gree Group strength, the two sides will form a joint force, Gree Group will not interfere with the management of the company's management rights.
Whether there is a relationship between the Gree Group's initiating this acquisition and Gree Electric Appliances and the connection between Dongming Zhu’s investment in the new energy vehicle company Zhuhai Yinlong, Xu Xiaowen told the Securities Times reporter that there is no cooperation between Changyuan Group and Zhuhai Yinlong. Dong Mingzhu did not participate in the negotiations between Gree Group and Changyuan Group.
Changyuan Group: Welcome Gree
According to the announcement of Changyuan Group, Gree Group made a resolution on the board of directors on April 23 to initiate the tender offer. The purpose of the acquisition is to look forward to the future development prospects of the Changyuan Group, aiming to strengthen strategic investment and strategic cooperation with the Changyuan Group, while Gree The Group intends to use its own resources to further promote the stable development of listed companies.
Changyuan Group disclosed the purchase price in detail in the announcement. The tender offer was 19.80 yuan per share, and the number of acquisitions was 265 million shares. The total capital required for the tender offer was 5.246 billion yuan. Compared to the last one before the suspension of the Changyuan Group. The trading day's closing price premium is approximately 14%.
According to the announcement, the tender offer period totals 30 natural days. The effective condition is that within the last trading day prior to the expiry of the offer period, the number of Changyuan Group's shares declared by the registered clearing company Shanghai Branch, which was temporarily held, shall not be less than 2.65. Billion shares. As of May 15, Gree Group has deposited RMB 1.05 billion (not less than 20% of the total amount of the tender purchase funds) into the designated account performance guarantee of the Shanghai Branch of the registered clearing company. However, this tender offer still needs to pass through Zhuhai. City SASAC, Guangdong Provincial State Assets Supervision and Administration Commission and other relevant regulatory authorities for approval and filing.
On the afternoon of May 15, Chairman of the Changyuan Group Xu Xiaowen said in an interview with the Securities Times reporter that before Gree formally launched the offer, the two parties had conducted full negotiations. The Gree Group mainly viewed the Zhongyuan Changyuan Group in new energy vehicles and smart equipment. Business development. But he did not disclose when the two parties began to contact and who was the initiator of the intention.
In the announcement, whether the Gree Group’s tender offer will once again affect the ownership of Changyuan Group’s control rights? Xu Xiaowen told the Securities Times that Gree Group is a strong company and Changyuan Group management welcomes Gree Group’s shareholding. It will form a joint force in the development of new energy vehicles and intelligent equipment business. He also mentioned that Gree Group will not interfere with the management of corporate governance after its arrival.
It can be seen from the financial report that Changyuan Group's performance has grown steadily in recent years. From 2015 to 2017, the company's net profit increased by 32.01%, 32.53%, and 77.55%, respectively. The company is currently the largest thermal shrinkable polymer and polymer PTC manufacturer in China and outstanding. Grid equipment suppliers.
After selling 75% of the shares in Changyuan Electronics, a subsidiary of the company that is engaged in heat-shrinking material business, to Woerlan Nuclear Materials (5.58 +0.54%, diagnostic stocks), Changyuan Group has electric vehicle-related materials, smart factory equipment and smart grid. The three major business segments of the equipment. In 2017, Changyuan Group realized a total of 7.433 billion yuan in main business income, of which, these three major business segments accounted for 27.67%, 33.02% and 39.31%, respectively.
Four subsidiaries of the Changyuan Group are involved in the electric vehicle related materials business. The main products include lithium-ion battery electrolyte additives, lithium-ion battery wet diaphragm products, etc.; its subsidiary Changyuan Shenrui’s product coverage Electric vehicle charging system, electric vehicle charging pile and energy storage system.
Dong Mingzhu did not participate in negotiations
Statistics show that Gree Group's total assets of 224.4 billion yuan, 151.6 billion yuan in 2017 revenue, net profit of 26.6 billion yuan. In addition to the well-known listed companies Gree Gree Group also owns industrial, island tourism, real estate, three plates, is currently in Zhuhai the largest city scale, the most powerful state-owned enterprise groups.
Gree Group's core business
Gree Group's Financial Data for the Last Three Years
But Gree Group disclosed 11 major business companies, not engaged in new energy vehicles business of the company, Gree Group tender offer long Park Group, is optimistic about its development in the field of electric vehicles, intelligent equipment manufacturing? This keen repairer are Dong Mingzhu about? Dong Mingzhu is currently the new energy automobile manufacturers Zhuhai silver Lung's second-largest shareholder.
For the tender offer, Gree Dong responded by saying: 'It is a group level action, not related to a listed company.'
When interviewed by the Securities Times reporter, Xu Xiaowen stated that there was no cooperation between Changyuan Group and Zhuhai Yinlong, and Dong Mingzhu did not participate in the negotiations between Gree Group and Changyuan Group.
On the evening of May 15, the Shanghai Stock Exchange sent an inquiry letter to Changyuan Group asking the Changyuan Group to disclose whether the tender offer was for the purpose of seeking control and the influence on the company’s control rights. Plan. At the same time, it is required to clarify whether there are issues such as horizontal competition or potential horizontal competition between the Gree Group and the parties acting in concert with the Changyuan Group.