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Sany accidentally appeared in the bidding team of Shenyang machine tool

Sany accidentally appeared in the bidding team of Shenyang machine tool

China Construction Machinery Information

Guide: on May 14, the state-owned equity transfer of Shenyang Machine Tool officially ended its listing in Shanghai United Property Exchange. After that, potential buyers of Shenyang machine tools became the object of expectation. On May 24, the relevant person in charge of Shanghai Stock Exchange disclosed to this newspaper that at present, the potential buyer of 49% equity of Shenyang machine tool has been determined. But

On May 14, the state-owned equity transfer of Shenyang machine tool was officially listed in Shanghai United equity exchange. After that, potential buyers of Shenyang machine tools became the object of expectation

on May 24, the relevant person in charge of Shanghai Stock Exchange disclosed to this newspaper that at present, the potential buyer of 49% equity of Shenyang machine tool has been determined. However, the person refused to disclose who the potential buyers were, but politely said that the final results would be released in June

at the same time, almost all the enterprises related to Shenyang Machine Tool seem to have reached a tacit understanding and agreed that they will never disclose any information before the official announcement

recently, however, a person close to the restructuring of Shenyang Machine Tool told this newspaper that two of the buyers of Shenyang machine tool have been generally determined - Sany Heavy Industry, a well-known domestic machinery enterprise, and Jana partners, a famous hedge fund in the United States. The person said that although the result of the buyer has not been officially determined, from what he knows, Jana and sany will likely become the final buyers

in this regard, although Shenyang is still silent, xiangwenbo, the executive president of Sany Heavy Industry, implicitly told this newspaper that Sany has indeed been invited by Shenyang machine tool for M & A, but the matter has not been confirmed by the internal meeting of the board of directors, and sany has not yet conducted due diligence on Shenyang machine tool

19% of the equity is sought after.

according to the initial provisions on the equity transfer of Shenyang machine tool, Shenyang machine tool will sell 49% of the equity, which is divided into two parts: 30% will be transferred first, and then the remaining 19% will be transferred. According to the above insiders, the main target of the bidding between Jana and sany is the 30% part

before that, the industry had speculated that more people would pay attention to the 30% equity, while less people would pay attention to the remaining 19%. The above-mentioned person said that the progress was not the same as the above prediction. On the contrary, many investors were far away from the 30% equity, including Morgan Stanley and Goldman Sachs

as we all know, at the beginning of the announcement of the equity transfer of Shenyang machine tool, internationally renowned investment companies Goldman Sachs, Carlyle, Da Mo, Citibank, Deutsche Bank, etc. all showed great interest in Shenyang. Among them, Morgan and Goldman Sachs are also considered to be the most likely buyers to become the final winner

it is because they are interested in the operating environment of Tongling Copper based materials industrial base. However, unexpectedly, at the last moment, these well-known investment companies appear extremely cautious

in a recent dialogue with foreign media, Da Mo said that it had no intention to follow up the bid winning of Shenyang machine tool. According to the analysis of a local investment analyst in Shanghai, if Morgan and other well-known foreign investors finally choose to exit, there is only one reason, that is, they are not worth taking risks for those few equities

the analyst's argument is: according to the regulations, the 30% equity transferred by Shenyang machine tool should be jointly raised by the two companies according to the experimental schedule. In this way, for the two companies that won the bid, there is no way to control more shares. "If the shareholding ratio is too small, it means that after joining Shenyang machine tool, they will not have enough say."

on the other hand, as a leading enterprise in China's equipment manufacturing industry, the equity transfer of Shenyang machine tool is of great importance, and the entry of foreign capital into leading enterprises is becoming the most sensitive topic in all walks of life in China

"for these well-known investment companies, when they enter an enterprise, they either absolutely control or get a small number of shares with clear exit methods." The above insiders said that for these enterprises participating in the bidding, Shenyang is still promoting the transformation and upgrading of made in China for qualification confirmation, and may use the comprehensive evaluation method to establish a review committee to determine the ownership of equity. "According to the original transaction rules, 30% will be determined first, and then according to the determination, the remaining 19% will be combined for bidding."

who is Jana

for most Chinese people, the name of Jana seems strange

less public information available shows that Jana is a hedge fund company in the United States, with assets of $50billion and headquarters in San Francisco. The company not only does some arbitrage business in the securities, financial and other markets, but also does some mergers and acquisitions and event arbitrage

compared with those super large-scale funds, Jana is not very famous, but its influence in the United States cannot be ignored - the fund has participated in the restructuring of many American companies, such as the acquisition of British Aluminum Corporation. At present, the fund is also one of the major shareholders of American Aluminum Corporation (Alcoa), the world's largest aluminum company

jana once had a brilliant performance in event hedging. A few years ago, Jana Partners Fund participated in the stock repurchase of Kerr McGee company. According to the data of HFR (American hedge fund research company), the return on investment of Jana Partners Fund was 31.8% in the three years before September 30, 2005, ranking second among event led funds

however, so far, no trace of Jana has been found in China. Therefore, insiders say that if Jana really becomes the ultimate receiver of Shenyang machine tool, it will not only be Jana's first feat in China, but also the first time foreign hedge funds invest in Chinese industry

traditional hedge funds generally arbitrage in the secondary market and rarely enter the industrial investment field. So why did Jana enter the bidding for Shenyang machine tool this time

"this is not surprising." Yu Shidian, deputy general manager of Shanghai Bohong investment company, the first hedge fund company established in China, said that at present, hedge funds have been standardized in the United States. Almost all the hedge funds corresponding to mutual funds can be called hedge funds. However, many hedge funds in the United States can not only invest in finance, securities and bonds, but also are keen on high-quality industrial investment. Therefore, it is very normal for Jana to enter Shenyang

jishupeng, an M & a expert and chief analyst of Dongfang Gaosheng, said that even if Jana enters Shenji, it is impossible to hold it for a long time, and will not join the machine tool industry in the future, but to realize the stock when Shenji is listed as a whole

Sany appeared unexpectedly

compared with Jana, Sany appeared in 30% of the bidding circle, which surprised the industry even more

"the appearance of Sany Heavy Industry surprised me." Jishupeng said that although Sany Heavy industry belongs to the priority range of the top 100 domestic machinery manufacturing industry specified by Shenyang Machinery, Sany Heavy Industry is mainly engaged in the R & D, manufacturing and sales of construction machinery, including construction machinery, road building machinery, hoisting machinery, etc. Although it belongs to the machinery industry with Shenyang Machinery, it still has a certain distance from machine tools after all. Therefore, the only explanation for Sany's involvement is that Sany is interested in the prospect of Shenyang Machinery, "Machine tool is a cyclical industry, and the brand of Shenji is very famous, which means that it will occupy an absolute market share for a considerable period of time."

"Sany didn't come in to pay dividends. It should be to win all Shenji one day." According to jishupeng's analysis, at present, Sany Heavy Industry is not strong enough to buy all the 30% equity of Shenyang Machinery Co., Ltd. in the future, after the overall listing of Shenyang Machinery Co., Ltd. and the withdrawal of Jana, Sany Heavy Industry can lock the equity of Shenyang Machinery Co., Ltd. held by Jana. This is because, judging from the current situation, the possibility of equity investment being listed and realized abroad is very small, and the possibility of Shenji being listed as a whole abroad is very small. At that time, it is obvious that Sany can take over the majority equity held by Jana, "the two sides are likely to reach such a tacit understanding"

at present, capital has become the primary issue of Sany's external expansion. With Sany's rapid expansion overseas, its statement at the end of the third quarter of 2006 showed that the company's main business income was 3.3 billion yuan, and its total liabilities had reached 2.9 billion yuan

however, in the process of "Carlyle's merger and acquisition of XCMG" in mid-2006, Sany Heavy Industry announced that it could acquire XCMG group whose sales were three times higher than its own at a price 30% higher than Carlyle's. At that time, Xiang Wenbo briefly introduced the four possible sources of "acquisition funds" - introducing overseas strategic investors; Transfer part of the group's equity without affecting its controlling position; Using the group's own funds; Issue bonds through banks

jishupeng believes that Sany can still take the above measures to solve the acquisition of Shenji. However, together with hedge funds, Sany Heavy Industry will either obtain very small shares or acquire with high leverage, which will be very detrimental to the sustainable development of Shenji

although the current bidding has not been determined, if Jana and sany succeed in this result, its significance will be extraordinary. "The biggest highlight is that Shenji equity transfer has created a new transaction structure"

experts say that since 2005, the most representative way of foreign M & A in China is the combination of domestic industries and foreign financial capital, such as Harbin pharmaceutical, XCMG and suber. The characteristic of this model is that "both ends are abroad", that is, the money comes from abroad, the target enterprise is at home, and the acquirer will still withdraw from overseas in the future. However, this time, if Jana and sany are successfully shortlisted for Shenji, it may become a new model for domestic enterprises and foreign capital to acquire shares in case of errors in the hydraulic system, that is, the joint participation of domestic industrial capital and foreign financial capital, and the withdrawal will be realized in China

jishupeng said that Sany may not hold absolute shares, but if Shenji is listed as a whole, its equity will be diluted, and the equity of Shenyang SASAC will be further diluted. At that time, 30% may be the largest shareholder

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