Jumper Wire Forming Machine
Jumper Wire Forming Machine, Wire Stripping machine, Wire cutting machine SINGSUN ELECTRONIC SCIENCE & TECH CO.,LTD , https://www.szsingsunautomatic.com
Weichai Power's merger of Hunan Torch and Hunan Torch Stock Exchange reforms The online exchange is currently underway at Panorama Network. Investors have already asked nearly 220 questions. Senior executives from companies and sponsor agencies have answered half of the questions.
The issues that investors care about are mainly concentrated on the merger and acquisition plan and the torch of the future, that is, the development prospects of Weifang Diesel after absorbing the merger. Chairman of Weichai Power Co., Ltd. and Tan Xuguang, chairman of Hunan Torch Motor Group Co., Ltd., said with full confidence: "If this plan can be smoothly implemented, the group's core asset synergy and strategic integration effect will be further exerted. The new company will undoubtedly form an industrial cluster with the largest scale, the most complete product lines and the best synergies in the areas of basic components such as powertrains, transmissions, and axle systems, and will become China’s most powerful auto parts group. "According to the information, there are two things to watch in this merger proposal. The first is the IPO + share exchange. As the consideration for the merger and merger reform and the equity division reform, Weichai Power will Xiangxiang Torch's existing addition to Weichai. All other shareholders except Power (Weifang) Investment Co., Ltd. (hereinafter referred to as “Weichai Investmentâ€) issued domestic listed renminbi ordinary shares (A-shares) and also cancelled the Hunan Torch, with Weichai Power as the surviving company after the completion of the merger. Apply for listing on the Shenzhen Stock Exchange. In this exchange absorption merger, Weifang Diesel’s share price is RMB 20.47 per share, Hunan Torch Conversion Price is RMB 5.80 per share, and the conversion ratio is 3.53:1. Zhuzhou City State-owned Assets Investment and Management Co., Ltd. (hereinafter referred to as "Zhuzhou State-owned Assets and Resources") will send shares to all the tradable-share holders whose shares are registered on the day of the equity share reform plan. Each ten shares will receive 0.35 shares, and tradable-share holders A total of 20,951,330 shares were obtained. Zhuzhou State-owned Assets Co., Ltd. replaced the total number of shares 53,446,270 shares in this consideration with the exchange ratio of 3.53:1 into 15,140,586 shares of Weichai Power A shares, and the shareholders of tradable shares obtained the total number of shares of 619,560,770 shares according to the ratio of 3.53:1. The ratio of shares was changed to 175,512,966 shares of Weichai Power A shares. The above-mentioned share-sending and conversion process will be completed at the same time and will not be implemented step-by-step;
The second point is the right to cash, and the tradable shareholders of the Hunan Torch can use all or part of the cash consideration to pay for the shares held by the Hunan Torch Torch in accordance with the price of 5.05 yuan per share. Zhuzhou State Capital pledged to abandon the cash option and pay the cash consideration. The party will transfer the shares related to Weichai Power.
Weichai Power, as a merger party, absorbed the merger of the Hunan Torch. After the completion of the transaction, the Hunan Torch was cancelled and the original shareholders of the Hunan Torch will become Weichai Power's A-shareholders in addition to the Weichai Investment and the shareholders who exercise cash options. Weichai Investment is a wholly-owned subsidiary of Weichai Power, and Weichai invested in the cancellation of this portion of shares. After the implementation of the plan, Weichai Power will become an A-share and H-share simultaneous listed company and will fully circulate in A-shares.
Some investors asked: "Why did Weichai Power absorb the merger of the Hunan Torch? Why did Hunan Torch agree to be merged and merged?" Company executives replied: Weichai Power is a leader in domestic high-power, high-speed diesel engine manufacturers. Sales volume and sales revenue have doubled in recent years, and the prospects for future development are very good. As of 2005, the company's products in the domestic market share of 15 tons and above heavy-duty vehicles and 5 tons and above loaders reached 80% and 78%. After absorbing the merger of the Hunan Torch, the company will have the most valuable and most profitable powertrain system in China and other automotive components with strong growth. It will become China's largest auto parts manufacturing group. The integration of Weichai Power and Hunan Torch Core's high-quality assets will help improve the competitiveness of the entire heavy truck component industry chain, help maximize the synergies between the two parties, maximize the company's value and maximise the interests of shareholders, and enable the former Hunan Torch The shareholders of tradable shares can enjoy the lucrative returns brought about by the rapid growth of Weichai Power and build a good business operation platform for the long-term interests of shareholders.
Some investors questioned the conversion price of Weichai Power. Tan Xuguang patiently explained that the issue price of Weichai Power A shares at RMB 20.47 per share was determined by considering the company’s recent stock price performance and the cautious valuation of the intermediary institutions. The issuance price is about 10% discount to the average value of the recent valuations of international big investment banks. For example, on September 1st, a special research report of Goldman Sachs gave a rating of 22.1 HKD/share on Weichai Power H shares. On September 4, the analysis report of CLSA pointed out that the target price for H shares of Weichai Power should be HK$22.37 per share; BOC International (Hong Kong) raised the target price of Weichai Power's H-shares to HK$25 per share. In addition, the price before the suspension of the H shares of Weichai Power was a price that did not reflect the 2006 interim results, and the 2006 interim results were higher than the average market expectations for Weichai's performance.
One of the sponsors of this share reform is the managing director of CITIC Securities, the chairman of the financing committee and the chairman of China CITIC Hong Kong Co., Ltd. Dedi Liren believes: "Huaxiang Torch has an important position in the heavy-duty automobile industry in China, and its auto manufacturing business for heavy-duty trucks And it has a very high market share for key components such as gearboxes, axles, gears, etc. Among them, Fast Transmission has a market share of more than 60% in the domestic truck market of over 8 tons while its heavy truck is over 15 tons. With a market share of more than 90%, it has obvious monopolistic advantages, and at the same time, its heavy-duty production has steadily increased in recent years, and its market share has continuously increased, making it one of the most important heavy-duty vehicle manufacturers in China. The share reform plan of “send shares and exchange shares†is the common wisdom of major shareholders, listed companies, and sponsors. It is another major innovation in the Chinese capital market. If this plan can be successfully implemented, the shareholding of the Hunan Torch Torch will be split. The problem can be solved, and China's best high-speed diesel engine manufacturer Weichai Power can land on the A-share market after the merger is completed. Weichai Power will have the best quality heavy-duty vehicle industry chain, in the interest of current shareholders and Weichai Power Torch shareholders. "
View related topics: Assembling: Auto Parts Giants Hunan Torch