China and the stock are brewing "privatization"

Chinese companies listed in the United States have been hit by a variety of shocks, the overall market continues to slump-this Monday, the Nasdaq-listed U.S. communications announced that the company's board has received a letter from Chairman and CEO Gao Yingjie, proposed to buy all the current issue of the shares of all Chinese.　　The proposal has added a new member of the company that chooses to opt out of the market by privatisation. In recent months, as the Thai-rich electric, China and the elimination of the "delisting" program, the U.S.-listed Chinese companies set off a wave of privatization climax.　　In mid-October, Chen, chairman and chief executive of the Shanda Network, announced plans to acquire 31.6% per cent of its outstanding holdings at about $736 million trillion, leading to a grand 100% stake, followed by nearly 10 Chinese companies announcing similar plans. Low valuation Germination "retreat" in fact, the recent announcement of "privatization" of the China-stock company is not lack of big names: In addition to the Grand flyover, October 24, the Chinese new Austrian concrete announced to enter the final agreement signed phase and plans with the company's chairman, Chief executive officer and COO-led buyer Group merger　　October 28 China Real Estate Information Network announced that it received the non binding qualitative proposal from the largest shareholder (China) with a 54.1% stake in the company, and would acquire all the shares issued by the company, and after entering November, Harbin Tai Fu Electric and An Ding announced that the company had completed the privatization transaction. Industry insiders point out that the most important reason for this group of companies to opt out of privatization is that valuations have been too low for too long to be seen by Wall Street.　　According to Chinaventure group data show that the number of Chinese companies listed in the United States from 2010 to 35 of the year to the first 10 months of 9, and in the financial fraud scandal, the encounter of short hunting, vie, such as the crisis, such as the impact of the storm, the overall market continued to slump. "These Chinese companies listed after the U.S. market is found to be ' right and wrong ', not only the cost of the listing is not low, financial information disclosure requirements, the parties to the operation of the company also have to intervene, coupled with the valuation has been no improvement, unavoidably heart-born retreat. "Shanghai, a brokerage investment bank in charge told reporters," the completion of the market, estimates have plans to return to Hong Kong listing, or return to a shares.　　"And the completion of the privatization of Harbin Tai Fu Electric Chairman Yang Tianfe previously also publicly said that the delisting is based on the enterprise's own future better development considerations, do not rule out the future will choose a more appropriate capital market again." Out of the "privatization" market, it is worth mentioning that the current announced but has not yet completed the privatization of the shares, have emerged from the "privatization market." After Shanda announced the privatisation plan, the stock price rose more than 10%, also continued to push forward the privatization process of the FU Popular science is also active in the recent 10 trading days, the share price rose about 20%. According to the Roche Securities report, the average premium on the closing price of a trading day before the 19-completed or ongoing privatisation is between 20% and 30% per cent,Security technology premium even reached 58.5%. In addition to privatization, the recent Giants network (micro-BO), Ctrip, Masahide transmission, Century interconnection, learning and thinking, Yu-hui sunshine, Helly automation, China's information technology and other companies have also announced the stock repurchase scheme. After announcing the repurchase scheme, many companies ' share prices have risen in varying degrees.　　Among them, the giant network, Ctrip and other companies in the announcement of the repurchase plan within days, the company shares immediately rose, a rise of more than 10%. Of course, not all companies will be doing so smoothly.　　According to the information disclosed, several companies have been privatized or failed, including September 27 this year, Chinese ceramics by 13.4% shareholders to the company's board of Directors of the privatization proposal, eventually rejected by the board of Directors, generalized insurance to abolish the privatization plan;　　Many PE to the success of the privatization of a number of successful Chinese enterprises, it is not difficult to find many PE in which the figure, including Bain Capital, Stone Fund, Chun-hua Fund, revival of industry, Ding Hui, deep venture investment, etc. have been as the repurchase share of the role of investors in the privatization transaction. According to PE industry insiders said that PE is keen to participate in the privatization process, and the value of the shares is underestimated. At present, most of the Chinese companies listed in the United States to privatize the privatization of 10 times times, while the first-tier market share price multiples of 12 to 15 times times.　　Once the PE intervention, can be listed with the enterprise and profit exit. However, "privatization" is not a decathlon. Bayron Rod, chairman and CEO of Roche Securities, said the privatization was a very long time, at least 8 months to a year, and that the financial costs of privatization were very high, and could even consume half a year's profit and affect the company's business, "If you could have PE for direct investment, It would be better to choose to start privatisation if efforts are made to raise share prices and valuations. "Newspaper reporter Tang