Guizhou source power additional three degrees of success or trigger an offer to buy red line

Qian Yuan Electric power (002039.　　SZ) with a "Hard-won" shareholder meeting resolution for the new chairman Wang applause. On the morning of May 28, 2010, in the conference room of the 4 floor of Qian Yuan building, although some small and medium shareholders steadfastly voted against it, several motions related to the directional issuance still received more than 85% of the votes, and were narrowly considered by the shareholders ' meeting.　　In fact, Qian Yuan Electric power in 2008 twice to plan for financing, even in November 2008, the reorganization plan submitted to the General Assembly for consideration, but unfortunately the small and medium shareholders rejected. A few hours later, at the same venue of the general meeting, after the election of the board of directors, the 46-year-old "Young Turks" director, Wang, took the scepter from Zhang Zhijiao and became the new chairman of the listed company, and on January 23 this year,　　Wang also replaced Zhang Zhijiao as Guizhou Wujiang River Hydropower Development Company (hereinafter: Wujiang Power) chairman. "Total equity will increase by 45%, tens of billions of liabilities reduced by 300 million"-this is the most resentful of the small shareholder of Qian Yuan Electric power, on the May 31, Qian Yuan electric power will turn downward, the day fell to 4.89%, significantly more than the decline of exponentially 2.78%, Qian Yuan electric power is further approaching 16.86　　Shares of the additional price, the report closed at 17.71 yuan/share.　　Controlling shareholder "Keep the proportion of shareholding"?　　At the top of the source of power in Guizhou, the company's refinancing is only directed to a single additional route. In 2009, the net profit of the Non-recurrent profit and loss was negative, in addition to the profitability of net assets is not strong, which has been blocked from the policy level of public offerings, shares and convertible bonds, and other fund-raising methods, and the only viable corporate debt, taking into account the "high asset-liability rate, in the current rising channel of interest,　　Does not improve the company's asset structure "and has to give up. As for the adoption of targeted additional funds, it is not a smooth road-in 2008, the directional issuance scheme, Qian Yuan Electric power is intended to 6.7 per unit price, to the actual control of China Huadian Group Corporation (hereinafter said: China Huadian) subsidiary of the Wu River water supply 74.63 million shares, raise 500 million yuan debt repayment, but many small and medium-sized shareholders think "　　Qian Yuan power holding shareholder low price participation in the issue, the number of subscription shares will dilute the interests of small and medium-sized shareholders, so the joint effort will be the above plan. "In this additional plan, we have actually learned some of the previous issue has been a number of lessons."　　"Qian Yuan Electric power senior personage said. This directional additional, Qian Yuan electric power will intend to be no less than 16.86 yuan/share price issue no more than 64 million shares, while the actual control of China Huadian and its subsidiary Wujiang Power only 8 million-13 million shares and 7 million-12 million shares, the remaining shares will be issued to institutional investors.　　As for the financing target, the collection does not exceed 1.08 billion yuan, of which 320 million yuan is used to repay the debt of financial institutions. According to China Huadian and Oolong River Electricity subscription interval estimate, if 64 million additional shares to be sold smoothly, this time the source of power of the actual control of Qian Yuan 15 million-25 million sharesSubscriptions will account for 23.43% to 39.06% of the number of additional shares.　　Qian Yuan Electric power source explained that the above 15 million-25 million shares of the number of the determination is based on, mainly the actual control of the people want to hold after the directional increase in the proportion of the power of the source of Qian, as far as possible to maintain in the former level.　　Up to now, China Huadian directly holds the 13.3% stake in Qian Yuan Power, plus the 12.01% stake in the holding subsidiary, Wu River Power, and the shareholding ratio reached 25.31%.　　or trigger the 30% offer to buy the red line but it should not be overlooked that the stock price of Qian Yuan power is at least theoretically unattractive to institutional investors. As a result of the proposed issuance of Guizhou source power of more than 64 million shares, excluding the holding shareholders and subsidiaries of the 15 million-25 million shares, there are still 39 million-49 million shares require institutional investors to subscribe, and as of May 31, the source of Qian Yuan Power received in 17.71 dollars/shares, corresponding to 16.86 yuan　　/shares of the additional price only 5% of the premium, so the number of successful issuance of additional issues remain suspense. A source of power in Guizhou is unwilling to see if the targeted issue by the regulatory authorities approved, then the two-tier Qian Yuan Power market price is far lower than the additional price, and institutional investors inadvertently subscribe, because the actual control and subsidiary of the Wu River Power subscription of the agreement has entered into force, then the actual controller will subscribe to at least 15 million shares　　, which means that Qian-yuan power can only raise about 250 million yuan of cash, and the actual control of the shareholders and subsidiaries will reach 32.52%, triggering 30% of the offer to buy red line. A Guizhou listed company Dong said, Qian Yuan Power small shareholder bullish company reason is very simple, Qian yuan power of the Beipanjiang company is about to enter the harvest, plus Qian source of electricity to engage in hydropower development, although the current electricity and water power grid is lower than thermal power but the main trend is "hydro-thermal Firepower",　　These will also be the reason for institutional investors to pursue the source of power in Guizhou. "Even if the two-tier market is lower than the additional price, I believe the firm's bullish institutional investors will still subscribe," he said. Said Mr Tung. The reason is simple, institutional investors think differently from retail, if there is a very optimistic about the source of Qian yuan power of institutional investors, in the two-tier market price below the case, it through the two-tier increase in 10 million shares is "to the billions of dollars to the former sellers", but on the other hand, If a 10 million share is "put hundreds of billions of dollars into a listed company" through directional issuance, if the listed company makes reasonable use of this part of the fund to improve the performance, the institutional investors will get far more revenue than the "extra part of the cost" when they subscribe.