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Research On The Stock Swap Merger Of State-owned Enterprises

Posted on:2017-02-14Degree:MasterType:Thesis
Country:ChinaCandidate:C M LiuFull Text:PDF
GTID:2309330503466645Subject:Finance
Abstract/Summary:PDF Full Text Request
Merger and acquisition(M & A) is a common economic activity in capital market. Stock swap become a popular way of M & A, because of its own advantages of avoiding capital chain tension, broadening the scale of M & A. Stock swap has been more and more applied to a variety of M & A cases. The merger of CSR and CNR by using stock swap realized the asset reorganization and integration between the state-owned enterprises and optimizes the allocation of national resources.As the representative of China’s horizontal mergers among state-owned enterprises, CRRC was chosen to specify the characteristics of payment choice and valuation methods towards target enterprises in practice. Analyzing through the angle of CSR against the whole landscape of present economic backgrounds, this paper thus studied the whole process of this merger by implying relative theories like stock-exchange payments and methods like case analyzing. The paper mainly studies the key factors of CSR’s payment choice and analyses the valuation of target enterprise CNR. It also demonstrated the stock exchange ratios in several ways to strengthen the confidence of the results. Finally summed up the characteristics of the acquisition and the experience can be used for reference. Since the actual usage of exchanging rate is in a reasonable range, stock swap turned out to be the optimal payment in this case for it best served the merger purpose and matched well with the scale and financial condition of this company. The SASAC also do effective coordination, taking into account the interests of all the parties in the case.Reasonable assessment of the intrinsic value of the enterprise is the cornerstone of all M & A activities process. Sustain improvements in Chinese capital market and exploration for effective methods of calculating stock exchange ratio is of vital importance in stock swap, benefiting M & A and enhancing the core competence of enterprises.
Keywords/Search Tags:Merger and Acquisition, Stock Swap Payment, Stock Exchange Ratio, Revolution of State-owned Enterprises, Absorption Merger
PDF Full Text Request
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