Analysis On The Convertible Merger Motivation And Performance Of Zheneng Electric Power

After experienced five major wave of Mergers and acquisitions between enterprises,the M & A activities of enterprises have also developed rapidly,and have shown new features such as increasing transaction size and amount,continuous innovation of trading tools and diversification of transaction forms.Among them,the convertible merger is one of the main forms of business combination,its main feature is the use of shares to pay the merger,that is,the acquisition of the company to use their own stock in exchange for the stock of the buyer.It makes the merger,in the international financial environment increasingly loose,especially in the background of the development of the financial services trade liberalization since the90 s.Compared with mergers and acquisitions in Western countries,the process of mergers and acquisitions in China is not longhand there are not many cases of mergers and acquisitions.At present,on the whole,China's convertible merger is still in the stage of reference and exploration,in the conversion ratio determination,value effect evaluation,information disclosure and accounting treatment methods need to constantly improve and improve.Therefore,at the present stage,it is necessary to provide suggestions for the introduction of relevant policies,and to provide relevant reference for the enterprises that are ready to convert the merger.In view of the above situation,this paper intends to use the combination of theoretical analysis and case analysis to study the merger and merger of the relevant issues.On the basis of reviewing and analyzing a large number of domestic and foreign research literature,this paper analyzes the economies of scale and the synergistic effect of the merger and the overall market formation by using the theory of scale economy theory and synergistic effect theory.In the case analysis,select Zhejiang Electric Power Co.Ltd.convertible merger of Zhejiang Southeast Power Generation Co.Ltd to analysis,in the introduction of related companies to consolidate the basis of mergers and acquisitions on the basis of summing up the case of corporate convertible merger of the specific process,and then the case of corporate mergers and acquisitions before and after the merger and its financial performance in-depth analysis,a comprehensive understanding of the case of corporate mergers and acquisitions before and after the merger and the consequences.Through the analysis of the case of the merger of Southeast Electric power,this paper draws the following conclusions:(1)Zheneng Electric Power's stock wasupward after the merger;(2)The merger has improved the financial performance of the firm;(3)B to A as a new B-share reform model is worth learning;(4)The merger is in line with national policy and the interests of both parties.On this basis,the author realize the B shares reform revelation which draws on B shares to convert the A shares:(1)The formulation of merger should focus on protecting the interests of small and medium shareholders;(2)Explore a more reasonable method to the conversion ratio;(3)According to their own conditions to choose the appropriate combination of the way;(4)B share's reform should innovation bravely and avoid blindly follow the trend.