Thursday, August 26, 2010

Keep on Fighting and Resources to Explore the Acquisition of Enterprise Skills

Research Center, according to the latest statistics and Qing dynasties, in July 2010 China M A market, 36 deals were completed, of which there is an effect of overseas mergers and acquisitions, involving an amount of up to 15 billion U.S. dollars, accounting for mergers and acquisitions in July the amount of 73.9%. Overseas M A can be seen the "generous." With the acquisition of domestic resource-based enterprises to the sea to become an industry issue, had common problem - an increasingly remote to resolve the political and legal risks, mergers and acquisitions, payment methods, financing sources and other technical aspects of the competitiveness of the victory or defeat will gradually become main reason.



Kailuan shares recently revealed on August 10 with Shougang International Trade Company, Canada, Germany and China signed a related agreement, the proposed joint venture development of Canada's forest cover coal. In addition, the company with Hebei Iron and Steel Group and Canada, Germany and China co-signed a "cooperation in the development of the Department of Canadian black jade Hebei coal agreement."
Previously on July 12 in London-listed mining company in Africa, announced the company has agreed to its Tonkoilili Shandong Iron and Steel 1.5 billion investment, Shandong Iron and Steel will receive 25% interest in this project, and can be purchased in accordance with the 1000 annual discount million tons of iron ore. Tonkolili iron ore in West Africa, Sierra Leone, the current proven reserves of 105 million tons, average grade of 30%.

These two cases is the only a microcosm of the Overseas. According to the data, the last two years, one in Australia, there Yanzhou Coal, China Minmetals Group, China Steel Group, Valin Iron & Steel, China Petrochemical, China Metallurgical, Shenhua, Baoshan Iron and Steel and other large corporate mergers and acquisitions have occurred in the country case. These cases mostly occurred in the resources sector, which reflects a certain extent, trends in our resource constraints. However, such mergers are very difficult, a great failure probability.
The main reason is the price of unsuccessful merger discussions came to naught. Successful M A, choose a different means, leading to a price difference. China Steel Group acquired the Mid-west company, and the Mid-west in the management of unsuccessful negotiations to start on the control, direct to the Mid-west of the shareholders to tender offer. Did not expect to grab a Cheng Yaojin - Murchison proposed a convertible anti-takeover plan, and mobilized a hedge fund on the open market purchase Mid-west heavy stock, resulting in price rise Mid-west. Ultimately driving up the cost of acquisition in steel.

Way acquisition, Yanzhou Coal by arranged. This is a different way of tender offer acquisitions. Arrangements for the program as long as the agreement reached with the major Gu Dong, the court ruled that you can Quebao transaction success Hou; by Anpai transactions to achieve 100% Shougou, and after Yuanyou assets Chongzuzhengge achieve Zaici listed in Australia, the flexibility to control Fahangbili, Wan Cheng financing repayment ; arrange transactions directly lock the transaction price, average acquisition cost per share lower.

Yanzhou Coal Mining Company Executive Director, Board Secretary of the Bao-length believes that the acquisition is very important during the low-key and secret.
While operating, setting up offshore subsidiaries Yanzhou Coal Yanzhou Coal Mining Company for the acquisition of Australia's operating platform, the company's headquarters and overseas projects erected between the "firewall", avoid business risks the company headquarters. Acquisition of the necessary funds, through the "credit within the warranty" means the financing, that is, not using the company's own cash reserves, but Yanzhou Coal Australian companies to overseas branches of syndicated loans to achieve their financing in order to reduce financing costs, interest on tax evasion.
With the steel "privatization" Mid-west difference, Yanzhou Coal Mining Company M Felix, the next step will be the operation of Australian companies listed Yanzhou Coal.

Bao-Long said, Yanzhou Coal Australia, through the listing of the company's future and invest in new projects to raise funds to further expand overseas development results achieved in the second Yanzhou Coal Australia and recycling.

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