Huang's 1% equity return attracts rich to buy Gome shares

Gome's scramble into the final moments before the decisive battle.　　On the eve of the special shareholder meeting on September 28, Huang's family and Chen Xiao's camp are all at full throttle. September 15, a mysterious person named Zheng Jianming was exposed.　　Although he said he did not know Mr. Chen and Mr Huang, Hong Kong still reported September 17 that Zheng Jianming, with 350 million shares (2.1%), would vote for the Huang Guangyu family at the conference on September 28.　　An unconfirmed statement also comes out: Huang's family to canvass for votes, 20% dividend return or 1% of the equity return to attract the mainland rich in the two-level market to buy Gome shares, in order to increase the odds, there are now three to four people accept the conditions of the yellow family. But Mr Huang's family has repeatedly fought for Bain investment, which is still in public. "After the debt-to-equity swap is completed, we will vote in favour of the management on the resolution of the extraordinary general Meeting of September 28," the spokesman said September 16.　　"Previously, it is reported that Bain has been and just released from the wife of Huang Guangyu Azalea contact." "I believe that the shareholders will make the right choice for the company's development," he said. "Gome Board chairman Chen Xiao, September 17, said to our correspondent," in this competition in the listed companies will not do some illegal behavior, but other people's behavior if deviated from the normal scope, and finally to bear the legal responsibility.　　"The fighting will continue until the voting registration deadline of September 22."　　A percentage of street fighting. September 15, Bain Investment in the special shareholder meeting before the completion of the convertible debt to the stock, the proportion of its holding increased to 9.98%, while the Huang Guangyu family's holding ratio fell to 32.47%. Chen and his concerted action are also diluted. Chen's shareholding ratio is diluted to 1.247%, his daughter Chen Yei hands of the stock ratio of 0.42%, Yongle original 50 employees will fall to 3.45%, so that the Chen Xiaofang shareholding ratio of 5.12%, coupled with a number of clear statements to support the board of Bain Investment in the proportion of shares,　　The board has a 15.1% approval rating.　　Obviously, in order to get more than 50% of the vote, Chen Xiao Camp also need to win the share ratio of more than 47% other 200 institutions support. Previously, Gome has said it has won the shareholding ratio of 42% of institutions to support.　　But this is the number before the Bain investment swap, which has dropped to around 40% after the swap. If the 40% per cent stake in institutional investors is invested in the board, the board's approval rating will be over 55%, winning.　　But the change in the percentage of institutions that were held before the vote made Chen Xiaofang nervous. First, JPMorgan and Morgan Stanley have opted for a sharp reduction in the run-up to the vote. According to the equity disclosure of the SEHK, after three consecutive reduction on September 2, 6th and 10th, JPMorgan's shareholding ratio has fallen to 6.66%, while the proportion of Morgan Stanley's reduction after the September 14 has fallen to6.33%, after the conversion of Bain Investment September 15 shares of the two sides were 6.01% and 5.71%, while the first reduction of the Fidelity Fund's shareholding ratio is 3.95%.　　As a percentage of the first three institutions, the share of the shares is only 15.67%, and the possibility of further declines is not ruled out until the registration date. "What the outside world see is three days ago data, from our data, some institutions in Bain investment after the stock has opted for overweight, we have no big change in the proportion of support votes."　　Gome Electrical Appliances said.　　But he admits that more than 6% of the shares sold by these institutions have been bought in the two-tier market by some of Huang's family-related people, including Zheng Jianming's 250 million shares, partly from JPMorgan Chase and Morgan Stanley's escrow investors. In this respect, Chen Xiao September 17 to our correspondent said, "the majority of organizations to reduce the stake is still bought by other agencies, so the overall situation will not be a big change." "It is noteworthy that there are some hedge funds and private equity, some of which are also playing an important role, but gome people believe that" these private equity in the two-tier market is only small investors in the hands of less than 5% of the stakes, this will not change the final pattern. "Organization Reduction and cuckoo canvassing in addition to the use of friendly people and some private placement in the two-tier market," Huang Guangyu family representative Shaochun also said, will be in the four days before September 22, in the case of the waiver treaty against the takeover offer to continue to overweight.　　This means that the yellow family in the two-tier market will also increase holdings of not more than 2% of the equity. Gome shares surged 5.49% to HK $2.5 on September 17 after the September 14 Zheng Jianming $800 million acquisition of Gome shares led to a 6.3% rise in Gome's share price. The source told reporters, "This is the Wong Kwong Yu family and its friends continue to be in the two-tier market, but its size does not exceed 2%."　　"Hong Kong media reported earlier, Zheng Jianming said that at the beginning of the year held about 100 million gome, now holding about 350 million shares, the target is to increase to 400 million shares, the individual also hope that Gome's share price can rise to 4 to HK $5 within 3 years. "If Mr Huang's family promises, then Zheng Jianming will receive a dividend return of more than HK $160 million after September 28."　　said the source. Gome related personage anticipates, after Huang Guangyu family completes the final sucking up, its with the consistent action person's hand stock ratio is expected to reach about 40%, while the Gome electric appliances Board of Directors obtains the approval rate at about 55%, "although the future may still have some small changes, but the big pattern will not change." "[Page] Chen has a lot of clout, largely depending on the attitude of Bain investment." Bain Investment a director September 17 to our correspondent said, "in early September and 15th I and the representative of Huang Guangyu family, and just got a reprieve of the cuckoo has had contact." From the results of the contact, the large shareholder's inconsistent statements so that investors can not trust their proposed future strategy and securityCommitment to the interests of investors. "The director, for example, said," Last June, the big shareholders said they could give up their absolute holding status and not participate in the shares, but they took part in the shares at the beginning of August, and they voted against the Non-executive directors we submitted this May, and now say that we are contradicting ourselves in our efforts to improve corporate governance. "Worried about the loss of invalidated" in the Hong Kong capital market, many investors are holding their shares in the brokerage or custodian business, while brokers or custodians deposit their shares in the central clearing and settlement system (Ccass) account.　　If an investor wants to vote, the simplest way to do so is for investors to notify their broker or custodian before the shareholders ' meeting, after which the broker or custodian can achieve an electronic vote through the Ccass system, and the investor is not required to attend the shareholders ' meeting. According to the HKEx, the shares of Gome in the central clearing system accounted for 78.96% of the total share capital, including HSBC, Standard Chartered Bank, Hong Kong, profit securities, Morgan Stanley, Citigroup, and Tai Fook Securities, respectively, reaching 30.01%, 11.64%, 8.13%, 3.85% and 3.52%.　　and 3.24%. The source told reporters that most institutional investors were managed by HSBC and StanChart two securities companies, among them, including JPMorgan Chase and other institutions, and the shares of Huang Guangyu's family and friends in the fortune and profit of two brokerages, some in HSBC, Standard Chartered and other places, the past few days HSBC's shareholding ratio has been adjusted many times,　　Dropped from nearly 32% to 29%, then up to 30%. This shows the intensity of the dark war between the two sides. The source said, "from the current view of the Board of directors will be the approval rate of 60%, while the Huang Guangyu family is expected to rob 40% of the approval rate, but the board will need to win the voting rate of at least 80%." "This left Chen's camp worried that they would eventually lose in some technical detail." Gome said, "In fact, starting from September 15, many investors have expressed their investment views to the custodian, or filled out the electronic ballot, we are now more worried about the vote of some investors because of missing the last time to set aside, which may affect the Board's support rate."　　"Although there is a greater likelihood that the board would win in the 7 motions such as the Non-executive director of Bain and the reorganization of the Board, there is not much chance of the board having a general mandate to issue 20% new shares in the board," he said. Former Hong Kong independent financial commentator David Webb, and independent polling company ISS have questioned the board's 20% additional mandates, and at the annual general Meeting May 11 this year, the majority shareholder with a stake of 33.98% voted in favour of the proposal, which only won 73.1%　　Support Ticket. And then the 2009 Annual general meeting of the vote, on the issue of additional bills received only 69% support votes, which means that there are always 30% of shareholders against giving the board such a grant, and this time, if the majority shareholder with more than 34% per cent of the stake is equally opposed to the proposal, it will be more difficult to pass.