Love to build shares three times to restructure frustrated funds without a flood

After three failures in history, the Shanghai International Group came to take over is certain, but the point is still a question November 16, the General Assembly of shareholders approved the proposal for a one-year delay in the issuance of shares to buy assets, which marks a continuation of the restructuring of the love-building shares. What are the obstacles to restructuring?　　A person who shares the board's office says the preparations for the reorganization are now complete, only for approval by the SFC.　　A number of people in the industry in exchange with reporters pointed out that the takeover by Shanghai International Group is the Government's intention, so the international group to take over is sure, but, Shanghai international and love to build shares have their own considerations, and international Group of assets, comb these assets will take some time. "We can't wait, we can't miss our chance," says one insider.　　However, today, Genliyan's case has not yet been decided, love to build trust's performance is far from the same industry, love to build shares also rely on non-recurrent profit and loss to adorn the financial statements.　　Three failed restructuring paths the restructuring of the shares was started in 2004 and continues to date. In 2004, the Hong Kong group launched a restructuring of the shares of the plan, but the plan was suspended in 2007, Shougang Holdings in 2008 and Li Ka-shing's Cheung Kong joint venture to take over, but after six months of negotiations, but also withdrew the restructuring of love, a year later,　　The introduction of Foutet (Shanghai) Co., Ltd., which has the background of Thailand Zhengda Group, still failed successfully. "They went in and found that there was a huge capital black hole in the trust," said a local analyst in Shanghai.　　The capital black hole refers to the love of building shares and the mysterious rich Genliyan of Harbin Love to build a new town project on the capital of billions of Yuan hole, behind the complex story.　　After three restructurings failed, the reorganization was changed to Shanghai International Group in August 2009. According to the restructuring plan, love to build shares of 12.21 yuan/share, to the Shanghai International Group Non-public offering 220 million shares, to buy its holdings of investment and access to the real estate 100% of the equity.　　After the approval of the Securities and Futures Commission, the proposal of the asset subscription part of the Shanghai International Group of Non-public offerings to raise 700 million yuan to invest in the Shanghai Trust, the Non-public offering has been approved by the Shanghai Sasac in late 2009.　　"The Shanghai municipal government wants to build this brand, so let the international group take over, of course others are afraid to take over," said one analyst at a large brokerage.　　In the future of the international Group of Real Estate injection, love to build shares have begun to comb its real estate business, at the end of 2009, will love Kun home 60% of the stake sold to Shanghai and, the Shanghai Love built Gu village 85% of the stake sold to Shanghai Hong Run Real Estate Co. The judicial tangle continues, the fund hole still unresolved and according to the reorganization plan, the second step is in the real estate asset receives the injection, and then to Shanghai International Group of Non-public offerings to raise 700 million yuan funds for the trust to increase capital.　　In fact, the trust is the most important reorganization, the previous three restructuring failure is because of the trust fund hole to the reorganization party at a respectful distance, and the industry pointed out that the Shanghai municipal government also intends to let Shanghai International Group to fill the hole.　　According to the estimate of the shares, the 700 million yuan cash injection, the trust can be estimated to achieve annual income of about 190 million yuan, the annual net profit of about 100 million yuan.　　"In fact, injecting 700 million is far from enough, and certainly more money will have to be injected," said a brokerage analyst. Although the trust has a core trust business licence, but the development of trust business on the scale of capital has a higher demand, and the trust of the registered capital of only 1 billion yuan, the most critical is the net assets are too low,　　As of the end of 2008, net assets of only 330 million yuan, the scale of net assets is small, in the industry competitive strength weak.　　At the same time, has been plagued by the love of the restructuring of the judicial obstacles has not been completely eliminated, the reporter from the love to build shares learned that the Genliyan case has not yet been pronounced, which means that the fund of the trust has not been filled. Genliyan lawyer Wang Junmin, professor of East China University of Political Science and political science, said in a media interview, under the auspices of the Court, love to build shares and Genliyan lawyer after several discussions reached a settlement agreement of 2.1 billion yuan.　　And according to the reporter understand, Genliyan in love to build the market value of the remaining assets in about 3 billion yuan, with the ability to become realized. "It cannot be a settlement agreement, it should be a trust company's recovery agreement, and now the state's public prosecutors are suing him, those are mainly trustees of the money, it is a criminal case, the biggest significance is to solve a historical tangle."　　Said Ai Jian insiders.　　And on November 16, the trust issued a notice, Fujian Eastern Power Co., Ltd. v. Love Building Trust, Love Jian Securities Co., Ltd. Shanghai Fuxing East Road Securities business Department, love to build securities limited liability company to return customers transaction settlement funds after 5 years after the trial, the amount of money involved amounted to 100 million yuan.　　However, those who love to build the company's board of directors said that the case is mainly related to the establishment of securities companies, the reorganization of listed companies does not constitute an impact. "Because at that time, the company was hanging in the trust companies, and then divided into the love to build securities, love to build the securities said the next day, but the other side said not entered, and the two people have been in prison." It is now in session, but it has not been awarded. The extent of the impact can be assessed based on the outcome of the decision.　　Insiders said. A certain reorganization, but not know "Shanghai International to restructure love building, is not impossible, but a certain, but now the key is the point of reorganization."　　The Shanghai local analyst said. Some insiders pointed out that the SFC to stop the reorganization of real estate to accept may be a substantial impact on the restructuring plan. China Securities Regulatory Commission announced October 15, in order to implement the state of the real estate industryRegulatory policy spirit, has suspended the acceptance of real estate development enterprises reorganization applications, and the accepted real estate restructuring applications to seek advice from the Ministry of Land and Resources. "They are not entertained now, but we have been entertained before this, may formalities will be troublesome, to ask the Ministry of Land and resources to check it, a more procedures, longer than the original time, he sent feedback, proved to be moving."　　"The insider insiders denied the claim.　　A person who shares the board's office said the timing of the restructuring was uncertain, but that preparations for the restructuring had been made and would eventually await approval by the SFC. "After the CSRC's moratorium on real estate restructuring, all restructuring of the property sector will inevitably be affected, as is the building of shares."　　A real estate analyst told reporters.　　"I think it's going to take a while for the international group to sort out its equity, and the international group has to deal with the stakes in its many companies before it restructures itself," says a local broker.　　It is understood that Shanghai International Group has Guotai, Wanguo and Shanghai Securities, in accordance with the requirements of the Securities and Futures Commission, it is necessary to clean up the stock of equity companies, and the final transfer of work has not been completed. At the same time, some analysts pointed out, "The big plan is the government set, but international group and love to build shares have their own consideration, if the two sides do not cooperate, it is difficult to promote performance growth." ”