United States PK Redstar who is the A-share repurchasking-
With the sharp correction in A shares in 2018, the regulatory authorities in the fourth quarter, revised regulations further relaxed restrictions on the repurchase and thus triggered a wave of A-share repurchase tide.
October 26, 2018, the NPC Standing Committee voted to adopt a decision on revising the "Peoples Republic of China Company Law", and from the date of promulgation; November 9, according to the "National Peoples Congress decision of the Standing Committee of the General Assembly <涓崕浜烘皯鍏卞拰鍥藉叕鍙告硶>, "the provisions of the joint Commission Ministry of Finance, the SASAC jointly issued the" opinions on support listed companies to buy back shares "; followed by November 23, the Shanghai and Shenzhen stock Exchange were issued" listed companies to buy back shares of the Regulations (draft) ", comments the open market. The rules combined with the existing market practices, to support the market aspects of repo, treasury shares buy-back system, and funds have been improved and standardized.
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in the new rules of landing the first weekend, nearly 30 A-share listed companies throw back purchase plan, or repurchase the maximum amount reaches more than 1 billion yuan of shares and there is a constant force people Fook medicine. Among them, Constant shares intended to concentrate auction trading shares repurchase, the total amount of repurchase funds not less than 10 billion yuan, not more than 20 billion yuan, the repurchase price is not more than 18 yuan / share. People Fook pharmaceutical company chairman Wang Xuehai proposed centralized auction trading to buy back shares, the repurchase of the total amount of not less than 500 million yuan, not more than 1 billion yuan. It intends to repurchase the maximum amount of over 100 million yuan as well as Jixin technology, Hui Long shares, Legg Mason cultural, talkweb information, Seiko Steel, co-forging smart and Zhejiang Guangsha other companies.
Wind data show that as of December 25, 2018, A total of 988 shares of the company started the share buy-back process, of which 764 were company repurchase, the actual total amount of about 48.845 billion buyback yuan, and the annual growth in 2017 compared to 43 times. Shortly after New Years Day 2019, A-share "good student" the US group issued a notice that from July 2018 to December 9511 the company has accumulatively repurchased shares, representing 1.4275% of total share capital, payment of the total amount of about 39.99 billion repurchase program has been completed.
However, access to statistical data can be seen as early as July 6, 2018, the domestic household retail leader, zero homeThe first sale of A + H shares Macalline announcement that the company at a price of HK $ 11.78 / share purchase repurchase approximately 389 million shares of H shares, with a total cost of about HK $ 4.581 billion (by the end of 2018 Hong Kong dollar against the RMB exchange rate, equivalent to approximately RMB 4.01 billion yuan), accounting for 9.9% of total equity. After the repurchase, Redstars total share capital decreased from 3.938 billion shares to 3.55 billion shares, the shareholding ratio of A shares and H shares, the net assets per share, earnings per share have nearly 10% of thickening.
in the end who is the 2018 A-share listed companies buy-back King "? After I compared these two companies repurchase operations found in several ways, from the repurchase of view, the United States and Meikailong buyback are about 4 billion yuan in the first inning tie; then look proportion repurchase, Redstar nearly 10% of the buy-back intensity is much higher than 1.4% in the United States.
Redstar is the first company to offer Share Buyback A share listed companies, a move, breaking the traditional centralized auction trading to repurchase shares monopolized pattern to fill the legal on provisions, but in practice no cases of blank, can be said to be a milestone in the history of the China Securities event.
Meikailong on the repurchase and innovation efforts a notch above
Similarly, Redstar followed by the national policy, or the first amendments to the Articles in terms of the buy-back A + H share companies. November 2018, Redstar announced that the corresponding provision has "Articles of Association" in the revision, the purpose of the buy-back "to buy back the shares awarded to employees of the Company" amended to "shares for the employee stock ownership plan or equity incentive ", the newly added" issued by the company for the conversion of convertible bonds into shares of the company "," company to maintain shareholders equity value of the company and necessary, "the statement.
While the Commission in November last year, the Shanghai and Shenzhen Stock Exchange was released repurchase shares in the new draft regulations, but the author carefully review the Shanghai and Shenzhen Stock Exchange issued the relevant provisions for repurchase of discovery, where " listed companies to buy back shares centralized auction trading business guidelines, "the fourth proposed" the presence of a shares, B shares or H shares market pricing issue a big difference, in which certain types of stock price is low, failed to reasonably reflect the value of the company, the Shanghai stock exchange to encourage listed companies to buy back their shares. on "the Article 28 guidelines and" Shanghai stock exchangeCity cash dividend guidelines, "Article 17 of that year listed companies have shown that the implementation of the cash paid for share repurchases treated as cash dividends, when the company proposed refinancing applications does not exceed the proportion of buy-back, the Shanghai Stock Exchange will be undertaken given the "green channel" treatment within the scope of duties, and to participate in matters awards, assessment, etc. as appropriate to give extra points in the company. The "on the support of listed companies to buy back shares" and "buy-back rules" and made it clear once again listed companies to cash consideration, the use of tender offer, centralized auction repurchase of shares, cash dividends of listed companies deemed to include the proportion of cash dividends related calculations.
repurchase and acquisitions are different concepts, part of repurchase financing company, by adjusting the structure of the financing company, stable stock, anti-takeover purposes, is participating in a nature. The acquisition of part of companies to invest, gain control of other companies through the acquisition of shares, in order to achieve the companys strategic and investment needs.
repurchases and acquisitions are quite different in every respect:
First, the purchase of shares of different subjects. The subject is a listed company to buy back its own, while the acquisition is subject to any other organization or individual outside the listed companies.
Second, the stock is treated differently. Repurchased shares need to log off or transferred within a certain period, the acquisition of long-term stock holdings.
Third, the number of different amounts. The number and amount of repurchase tend to be small (5%), while the acquisition because the purpose is usually to gain control of other companies, the number of tend to be larger.
Fourth, the different business processes, process reference repurchase Law 143, Chapter IV acquired securities laws. Compared with the current raging fire set off a wave of repurchase tender offer are A-share market will be fully set off. That in the end what is the tender offer? With an offer to buy back what is the difference?
both have in common is someone else to buy shares in the hands of investors. Tender offer refers to the purchaser by issuing to the shareholders of the target company to buy its written opinion shares of the company said, and in accordance with the acquisition condition bulletin to law takeover offer set forth in the price, duration and other provisions stake matters, the acquisition of the target company the acquisitions. Tender offer is the company issued at a specific time offer to all shareholders to price higher than the prevailing market price, given the number of buy back shares.
According to statistics, in 2018 completed a total of 15 A-share market since the tender offer, as well as seven tender offers in progress. Jidong Cement on September 21 announced the "Tender Offer Report", Beijing Jinyu Group Co., Ltd. issued a partial offer to other shareholders Jidong Cement in addition Jinyu Group, Jidong Development Group Co., Ltd., the gold Corner Group intends to offer to acquire Jidong cement over 67,376,000 shares, representing 5% of the total share capital of Jidong cement, the offer price is 11.68 yuan / share. The starting date of the tender offer closing price of 10.28 yuan, 13.62 percent spread. As of October 24, 2018, upon the expiration of the tender offer period, a total of 19,540.7 million shares accept the offer Jinyu Group issued, ie 34.48% of participation in the tender offer of shares to be acquired. October 30, Jidong Cement resume trading days closing price of 9.99 yuan, if you choose on this day tender offer will not all sell part of the stock, the tender offer is part acquires 4.7% of revenue, is not part of the tender offer losses 5.64% both offset a loss.
Another example is the day of state shares in the November 22 announcement that the Agricultural Development Group in Zhejiang Province, as the only large provincial agricultural enterprise group, issued a tender offer to all shareholders part of day state shares, the number of shares in the tender offer about 116 million shares, accounting for 10% of the total day state of shares, the offer price of 6 yuan / share. As of December 24, the final percentage of shares tendered was 3.0376%, that is to accept the Share Offer are all the acquisitions, revenue was 16.5%. The reason why the shares to accept the tender offer so little is day state shares in the secondary market price is higher than the tender offer price, the secondary market price peaked at 7.02 yuan, December 28, the end of the tender offer also resume trading day closing price of 6.8 yuan.
Looking at the market case, is more common tender offer, tender offer minimal. Redstar is neither to focus on competitive bidding to buy back shares, and non-tender offer to acquire shares and replaced by more innovative cash tender offer to repurchase H shares, in essence, still achieve the purpose of protecting the interests of minority shareholders, the idea is to provide a reference for the listed companies to explore innovative ways to reward shareholders. The Macalline to repurchase dollars spent 4.01 billion yuan, accounting for 2017 profit attributable to the proportion of cash dividends to the parent company net profit up 100.54%, highlighting investment companiesCapital value, given the expected long-term market stability.
repurchase behavior conducive to enterprise markets regain confidence
Analysts pointed out that a good share buy-back system will help enhance the inherent stability of the capital market, the downstream market for listed companies to carry out the reverse operation, iron out market volatility, the effect is similar with the national stabilization Fund. And the courage to be able to buy back shares, indicating that the companys business situation, profitability and prospects for the development of confidence, help boost investor confidence, stabilize market expectations, with a positive effect on the healthy development of capital markets.
The author believes that the repurchase of shares of listed companies with a way to reward investors, its significance or even more important than the cash dividend. One can avoid the problems caused by the dividend tax and dividend mechanism, on the other hand to avoid major shareholders cash dividends in the name of the listed company as a cash machine, the quality of listed companies not only by increasing cash dividends reward investors, too You may return to investors through share buyback.
Throughout the domestic and overseas capital market, we have courage and the ability of companies to buy back their own stock are often top companies. Because, not only to repurchase the companys confidence in the prospects for the development, but also for the companys cash flow is very demanding. Under the policy support, market bullish, encourage listed companies to buy back shares in the background, Redstar has been able to make repurchase shares such cases and successful innovation together, also benefited from Meikailong also on operators maintained a rapid growth momentum.
public information, the first nine months of 2018, Redstar operating income 9.991 billion yuan, an increase of 29.40%; attributable to shareholders of listed companies net profit reached 4.16 billion yuan, an increase of 46.50% . As of December 31, 2018, Redstar run 80 operating shopping centers, 228 shopping malls pipe Commission, in addition, the company authorized franchise opened 22 franchise home building projects, including a total of 359 home building materials store / industry Street.
(Source: billion euros net, invasion deleted)
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