Analysis Of Pricing Of Equity Share Offer Of Hualing Iron And Steel Group

As a prominent phenomenon of the process of modern economy development , the merger and acquition(M&A) , from the macroscopic view, is an effective means of industry restructuring and reasonably distributing the resources;from the microscopic view, is the way of choosing the subsistence and development under the market economic condition, and is also an viable measure of the transformation of the state property right. Since 2004, one striking impetus of the Chinese iron and steel industry is that the leading top iron and steel enterprises in the main part of China make great efforts to do M&A and reorganization , forming the M&A and reorganization momentum of Chinese iron and steel industry.The means of M&A are comprised of buying one enterprise's equity , or to buy one enterprise's net assets. No matter which means is adopted , the transaction pricing is a must that can not be avoided. It's of great importance to make out the transacton price by the enterprise's owners and managers and to correctly analyze their own company's value and target company's value in order to make reasonable strategic decision of selling assets and capital operation concerned. In this paper the commonly used theory of the pricing in M&A is explained and the pricing issue of the equity share offer of Hualing Iron and Steel Group,Hunan is approached , analyzed and computed by means of such practical methods as assets book value adjustment method , P/E comparison valuation...