For a company, to achieve growth and growth, on the one hand, it must grow endogenously, and on the other hand, grow through epitaxial acquisitions. As far as the capital market is concerned, mergers and acquisitions of assets are an important means for enterprises to grow rapidly.
Statistics from the Securities Times and Databao show that excluding cases that failed and were not passed by the Development and Review Commission, the A-share market has revealed 41 mergers and acquisitions with transaction amounts over 1 billion yuan since this year. Judging from the restructuring progress, 10 cases have been completed; the Development and Review Commission has approved 8 cases, the Board of Directors has approved 6 plans, the Securities Regulatory Commission has accepted 5 cases, and the shareholders' meeting has approved 4 cases.
41 billion-dollar mergers and acquisitions during the year
Specifically, Shuanghui Development decided to absorb 100% of the shares of Shuanghui Group at the beginning of this year, with a transaction amount of over 39 billion yuan. At present, this merger and absorption case has been completed. Chinese businessmen in Wuhan are planning to increase the acquisition of 100% of the new retail shares. The transaction amount of 35.65 billion yuan is in second place. The backdoor plan has already been approved by the Development and Review Commission. FAW Sedan plans to buy and release 100% of FAW's shares. The transaction amount reached 27 billion yuan, ranking third. The plan has been approved by the State Assets Administration Commission. Furthermore, companies such as CITIC Special Steel, Ziguang Guowei, and New Territories Pump Industries have purchased assets worth more than 10 billion yuan.
Generally, the stock prices of listed companies that have acquired assets with huge sums of money tend to respond positively, mostly showing a positive trend. For example, after Confidence Electric revealed that it intended to buy Xiangcai Securities, the stock price once rose and stopped for 9 consecutive days. Another example is that after Chinese businessmen in Wuhan disclosed their plans, they went up and down for 5 consecutive words. There are also companies whose stock price performance is relatively average. For example, the stock price fell to a halt on the day the Yintai Gold acquisition was revealed. When CITIC Special Steel's predecessor, China Metallurgical Special Steel, disclosed the takeover case at the beginning of the year, it only rose 4.14% from high to low on the same day.
Reasons such as the type of asset to be acquired, the market environment at the time of the acquisition, and market risk appetite may all have a significant impact on stock price performance. However, in the long run, the quality of acquired assets is the most important factor in determining stock price performance.
Judging from the stock price performance since the disclosure of the restructuring plan, the biggest increase was Minjiang Hydropower, with a cumulative increase of more than 202%. Through asset replacement, Minjiang Hydropower has become a leading power informatization leader. CITIC Special Steel ranked second in terms of increase, with a cumulative increase of 150.51%, in second place. China Airlines Shanda and Changchun Hi-Tech both increased by more than 100%, ranking third and fourth.
Stock price performance was poor after some companies disclosed restructuring plans
Yintai Gold, which plans to acquire 83.75% of Guizhou Dingshengxin's shares for 4.2 billion yuan, saw the biggest drop, with a cumulative decline of more than 24% since the disclosure of the plan on September 26. Furthermore, individual stocks such as Tongcheng New Materials, Three Gorges Water Resources, and Zhongmin Energy all fell by more than 20% after announcing larger mergers and acquisitions.
Among stocks that bucked the trend and fell, the New Territories Pump Industry had the largest acquisition amount. Tianshan Aluminum backed up 17 billion yuan. After the plan was announced, the stock price went up and down for 5 consecutive periods, but since then it has continued to recover. The latest price has dropped 1.31% from the closing price before the announcement. Second, Zhejiang Fortune Holdings' share price fell by more than 20% after the announcement of the 14.5 billion yuan takeover. Three Gorges Water Resources acquired more than 6.5 billion yuan in assets, and its stock price fell by 22.65% against the market.
There are also major stock acquisitions that have shown stagnant increases, including FAW Auto, Ziguang Guowei, and Xinjiang Tianye, etc., all of which increased less than 5% after disclosing the restructuring plans.
Some analysts said that under the current structural market, the stimulatory effects of buying different types of assets on stock prices are highly differentiated. But as long as they are high-quality assets, they may be discovered by the market in the future. Typical CITIC Steel, as mentioned above, had an average stock price performance at the beginning of the introduction of the restructuring plan.
Some stocks were favored by more institutions. Jidong Cement, for example, received ratings from 18 institutions, and there is room for a consistent target price increase of more than 48%. In addition, Yintai Gold received ratings from 15 institutions, and there was room for a consistent target price increase of more than 47%. In addition, individual stocks such as Ziguang Guowei and CITIC Special Steel have received much attention from institutions.