Giant network to start privatization in the market trend of stock retreat

⊙ reporter Wang Yu industry Yu Bingbing 0 edition Chujiang giant Network privatization once again put the middle-stock to the cusp. In recent years, under the impact of the United States short institutions, a number of games, science and technology stocks have taken the initiative to opt out of the city, or there are valuation reasons, or other reasons, which reflects to a certain extent, the U.S. capital market for such stocks in the "not cold." And the reverse view a-share market, such companies frequently exceed multiples of the price-earnings ratio, and formed a relatively sharp contrast. The giant network declined to comment. But an entrepreneur close to the Shi Yuzhu told the news that valuations were still the main reason for announcing the retreat.　　As to whether the future return to the A-share market, there is no conclusion. Privatization of the price of more than 1.4 billion dollars on the night of November 25, the giant network suddenly announced that the company will be composed of Shi Yuzhu, such as the consortium "privatization." The company disclosed that its privatisation offer was $11.75 per share, a premium of about 16% over the closing price of the 10.13 dollar in Friday. With 240 million of total equity, the privatisation is valued at about $2.8 billion trillion for giant networks. The SEC Bulletin found that the consortium included Shi Yuzhu and its holding company, as well as the Baring Asia Investment Fund. The consortium currently has a 47.2% per cent stake in the company, which means that the total amount of transactions involved in this privatization will exceed 1.4 billion US dollars if calculated at the above price. By this effect, the day giant network shares straight up, closed at 11.41 U.S. dollars, or 12.64%, the biggest increase in five years. Looking back on the six-year network of Giants on the market, it has not won the pursuit of overseas investors. November 1, 2007, giant Network on the NYSE listing. At that time, the issue price was 15.5 US dollars and the total amount was over 1 billion dollars. In the early days of the IPO, the giant's network share price was close to 20 U.S. dollars, but then overall showed a downward trend, the performance is very depressed, in 2011 years fell to 3 U.S. dollars, and then gradually rebounded to about 10 U.S. dollars. In valuations, the company has long been hovering around 10 times-fold, and international agencies have repeatedly given a "strong buy" and "overweight" rating, but the company's share price has not budged. In this context, "as the company can bring stable cash flow, the privatization of giant network is also understandable." Said one investment banker. To this end, the reporter contacted the giant network, but the company concerned people do not comment.　　An entrepreneur close to Shi Yuzhu believes valuations are still the main reason for announcing a retreat. The dilemma highlights the giant network as a share of the stock, its "privatization" in the U.S. capital markets is not an exception. October 15, 2011, the U.S.-listed Grand Interactive Entertainment Co., Ltd. said that the founder of the Chen, the proposal to privatize, the United States depository shares of 41.35 U.S. dollars to buy back the company's shares, the price than the original share premium of more than 20%. On that day, the company's shares soared 16%. And after the company's stock price has been weak, the overall low valuation, which undoubtedly let Chen flyover rather "frustrated", and so many times in the public table, "Wall Street doesn't understand my game." In addition, the perfect World, Shanda games and so on in the game stock because of valuations and other factors, has been prepared to withdraw the information. Not only in the game field, the media, communications and other areas of the stock market is also not subject to the U.S. capital markets "to see." One of the reasons for the privatization of the previously privatized media, executives point out, is that it is difficult for Americans to understand the business model of the niche, and to make a reasonable valuation, whether it is early in the US roadshow or after it communicates with investors. Another example is the high tech company, which has maintained rapid growth over the past few years, but the US capital market has given a 10 times-fold price-earnings ratio, and the industry interprets it as limiting the company's ability to finance, which is one of the reasons for the company's retreat. On the other hand, in the past 2 years, the United States shorting agencies frequently launched the "attack" on the shares, some companies even if there is no problem, the stock price also fluctuated, affecting the normal operation of the company. At the same time, it has further worsened the image of China stocks in U.S. capital markets, thus dragging down valuations. For Giants network, exhibition Communications, Shanda Interactive Entertainment Co., Ltd., such as these have been out of the city (or ongoing) companies, the market has not ruled out its share in the possibility of listing, a A-share high valuation is one of the main incentives. Gaming companies, for example, are prone to multiples of 10 times times the market net rate, so high valuations on the companies are undoubtedly full of temptation. The privatisation of the Giants ' network, and so on, has not changed the valuation of the US capital market for China stocks. What is worth pondering is whether the A-share market is overvalued for such companies. Or is there a century-old American capital market that does not understand the value of such companies? Then, who will be the next initiative to withdraw from the market?