The Analysis Of The Benefit And Risk About Privatisation Of Public Company

As is known to all,become the public company,the enterprise ability is qualified to issue shares,to raise large sums of money quickly,improve the ability of debt financing,expand the capital strength,improve the market value of the brand and increase market share and so on.But it is hard to understand many public companies to go privatisation.Since 2005,China petroleum,China petrochemical,China aluminum respectively to privatization of a subsidiary company,became a big breakthrough in the history of China's capital market.Around 2010,some Chinese stocks go to the u.s.to seek a listing that broke out in a crisis of confidence,at this point it also have an wave of privatization.Not only has large state-owned enterprises to choose the privatization,some private enterprises have also begun to privatisation.On September 20,2016,Wanda commercial also delisted from the Hong Kong stock exchange,privatization delisting again entered people's field of vision.This phenomenon has caused scholars to the attention of the privatization,and began to study its development in China.The first part of this paper mainly discusses the income and risk of privatization:first summarizes the strategic adjustment,evasion regulation,acquisition prevention,value revaluation and return to domestic listed these factors,and then expands the proceeds of privatization based on the wealth transfer and cost reduction;Finally,the compliance risk,decision risk and other risks of privatization are summarized.The second part focuses on the delisting of Wanda commercial: the overall description of the process and status of Wanda commercial privatization,and now it has completed the privatization;And through strategic adjustment,value re-evaluation and other aspects to make a summary of its income,through the risk of the new model of Wanda commercial privatization,and the risk of small shareholders in the process of privatization are summarized;And based on its annual report data through a free cash flow model,according to the valuation results,concluded that the privatization of Wanda business in terms of buyback prices outweigh the disadvantages.In the third part,according to the analysis of privatization proceeds and risks,the feasibility of privatization provides reference for the final owner,the capital operation scheme ofprivatization and PPP strategy according to the personal situation of the enterprise;And according to the status of privatization in China,through the credit of controlling shareholders,the related directors withdraw,independent directors participate in,ensure the full disclosure of the power of small and medium shareholders in privatization decision-making and relevant information,put forward suggestions to small shareholders.