| Since 2000, more and more Chinese private enterprises are pursuing to be listed overseas to maximize the interests of shareholders. However, with the outbreak of the trust crisis in 2010, Chinese private enterprises have spawned a privatization and delisting wave,and hoping to be listed on China stock market by reverse merger or any other operation mode. Most of the Chinese enterprises that have already finished the privatization and are preparing to be listed on China stock market are famous and mature internet companies, such as Shanda, Focus Media and Giant.There are few specialized research on the privatization, delisting and return to China capital market for enterprises, and there are few relevant successful cases. Therefore, this paper will study the privatization of Chinese private enterprises listed overseas and how to return to China stock market in order to enrich this subject.Based on the economic background, firstly this paper summarizes the related literature researches about how the enterprises go equity carve-out, go list overseas and go private. Secondly, taking Sou Fun as a case, which return to China stock market by carving out equity and reverse merger, under the background of the Chinese private enterprises overseas listing and delisting wave, combined with the characteristics of privatization, this paper analyze the reason why Sou Fun chose equity carve-out instead of privatization and the related risks. Meanwhile, combined with the general process of remove VIE structure that most enterprises hoping to return to China stock market would implement, this paper analyze how Sou Fun arranged VIE structure flexibly. Finally, this paper study reverse merge that Sou Fun chose to be listed on China stock market, compared with other methods to be listed.We hope that Chinese enterprises which are planning to be listed on China stock market can get inspiration from the study of avoiding privatization and go equity carve-out to return to China stock market of Sou Fun, which would provide a reference for improving the operational efficiency of return to be listed on China stock market. |
