Guangxin Group invested 619 million yuan to become the owner of Buddhist plastic shares
Guangxin group has signed an equity transfer agreement with its largest shareholder Foshan Plastic Industry and trade group company (hereinafter referred to as "industry and trade group") on the 15th of this month, when China urgently needs to improve the industrial standards of plastic granulators. Guangxin group purchased 20.78% of Buddhist plastic shares at a total price of 619 million yuan, becoming the largest shareholder
affected by this news, the shares of Buddhist plastic surged 4.35% to close at 7.91 yuan yesterday
in the equity transfer agreement reached on June 15, Guangxin group promised to keep the main business of fosu unchanged. However, due to the change of major shareholders, insiders said that fosu is likely to carry out asset restructuring and weaken the MBO of fosu shares. Securities analyst Mr. Zhou analyzed that some shareholders in fushuohongxin, the second largest shareholder, may be stripped of their management functions and only exercise the rights of shareholders. "For example, the chairman and general manager may change"
Feng Zhaozheng, the current chairman of fosu Co., Ltd., is 59 years old and has been in this position for 16 years. A familiar old employee commented that Feng Zhaozheng was low-key, "having worked in the company for 20 years, his contribution to the company is indelible". However, yesterday, the relevant person in charge of fosu said that there was no plan to change the management at present
embark on the road of loss after MBO
the entry of Guangxin group marks the weakening of fosu's MBO for seven years. Fosu's share is also known by the industry as an example of successful MBO but failed enterprise
in May 2000, fosu shares were listed on the Shenzhen Stock Exchange, which was the fourth listed company in Foshan Chancheng district that year. Mr. Chen, who has worked in the company for nearly 25 years, recalled that almost everyone of fosu's employees bought shares of the company before it was listed, and he was very optimistic about the growth of the company. The company was also rated as "top 500 Chinese enterprises"
two years after the management funded the acquisition of shares
was listed, fosu began its own MBO process. On June 19, 2002, 22 management personnel of Foshan fushuo Hongxin Investment Co., Ltd. contributed to the establishment of Foshan fushuo Hongxin Investment Co., Ltd. with a registered capital of 41.33 million yuan, of which Feng Zhaozheng, chairman of Foshan Plastics Co., Ltd., and Wu Yueming, vice chairman and President and general manager, contributed 1.475 million yuan and 1.416 million yuan respectively, and the software can be expanded according to user requirements. The legal representative of Foshan fushuo Hongxin is Xian Jingsong, supervisor of Foshan Plastics Co., Ltd. At that time, the industry believed that the purpose of establishing fushuo Hongxin was to acquire the equity of Buddhist sculpture
more than a month later, rich Hongxin purchased 110million shares held by the former second shareholder Foshan Plastic and leather industry cooperative association at the price of 2.95 yuan per share, accounting for 29.462% of the total share capital of the company
however, MBO did not bring vitality to fosu shares. Since then, the performance of fosu shares has declined year by year. The announcement shows that in 2002 and 2003, the net profit of fosu shares reached 116 million yuan and 118 million yuan; In 2004, The net profit of the company fell sharply to 67.4564 million yuan "We not only set up a research and development center in Shanghai; in 2005, it fell to 4.1871 million yuan; in 2006, the company lost 91.5737 million yuan; after turning around the loss in 2007, a loss of 196 million yuan broke out again in 2008.
dividends exceeded net profits in four years.
so far, Mr. Chen still believes that the losses of fosu are caused by raw materials and the market. However, some insiders pointed out that the MBO management mode of fosu shares did not benefit the enterprise.
When the company's performance continued to decline, fosu made management dividends for four consecutive years from 2002 to 2005. According to wind statistics, from 2002 to 2005, the net profit of fosu fell from 116 million yuan to 4.1871 million yuan, with a total net profit of 305 million yuan, but the cumulative dividend reached 344million yuan. Among them, the accumulated after tax dividends of Fushui Hongxin are 81.5501 million yuan. In this regard, Mr. He, a former employee of fosu, said that after the implementation of MBO, the management of fosu benefited, but the company did not see revenue, which also made many people think that the management was making short-term investment after MBO
losses occurred and shares were reduced
after the loss of fosu in 2006 without red points, since January 2007, rich Hongxin began to sell its shares sharply. According to relevant statistics, from January 2007 to March 18, 2009, Foshan fushuo has reduced its holdings in at least 18 batches, reaching 82.22 million shares, with a cash out amount of more than 400million yuan
in the case of the substantial reduction of the second largest shareholder fushuohongxin, Foshan Industry and trade group, the largest shareholder of fosu shares, is also continuously reducing its shares and transferring its 20.78% equity in the form of public solicitation. This time, as the only transferee, Guangxin group accepted these shares and became the largest shareholder of Buddhist sculpture. The market has great expectations for this equity transfer of fosu shares. Over the past few months, the shares of Buddhist sculptures have been sought after from a minimum of more than three yuan to more than seven yuan. An employee of fosu said that because both Guangxin group and fosu shares have close ties with light industry, the takeover of Guangxin group is worth looking forward to
MBO is the abbreviation of managementbay out. In short, it is the process that managers use a small amount of money to acquire companies and become company owners. In the 1990s, MBO, as a way of property right system reform, rose in China. To a certain extent, it solved the situation of the separation of enterprise managers and owners. However, when more and more state-owned shares were transferred at a low price through MBO, MBO was once accused of being a gray channel for the transformation of state-owned capital into private capital. In 2005, MBO was suspended by the SASAC
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