A Case Study Of Overseas Privatization Of Focus Media

From the early 90 s of last century,the China concept stocks have landed in the US stock market for more than 20 years,during which there were five times the tide of listing.However,from 2011,a round of overseas delisting boom started.Until December 2013,a total of 31 listed company in the US stocks have completed the privatization,such as Alibaba,Shanda Games,Giant Network.Since 2015,there are already more than 30 listed in the US stocks have announced the privatization,such as Qihoo 360,Century Internet and so on.The reasons for the overseas delisting are varied: the long-term underestimation of the company's value and the persistence of the stock price;the high maintenance cost during the listing period;the mature mechanism of shortening overseas;In the long-term strategic considerations.Most enterprises have chosen to return to the A-share market after privatization,but few were successful.Therefore,in view of this phenomenon,it is necessary to sort out the complete process of the return of A-share market,conduct a systematic review of the various difficulties and risks of the whole transaction,and make a summary of types of companies which are suited to delist and some operation points during the capital operations.This article focuses on the real case of Focus Media.Through a detailed introduction of transaction,we'll better understand the capital operation of "privatization + listing in A-share market".First of all,make a judgment of the rationality in this capital operation.Then,analyze the motivations of the return of A-share market and various difficulties and risks in the whole transaction so as to summarize the common strategies for the later enterprises.Finally,make some additional suggestions for the existing market participants.The innovation of this paper is to analyze the performance of the company before and after the return of A-share market and evaluate the rationality of its return to A-share market by “backdoor listing”.Secondly,sort out the whole process of transaction and make a complete classification for the type of enterprises suited to return,and extract a set of operational points.The current research area is either focused on the analysis of the causes of privatization,or focus on the backdoor listing,lacking necessary systematicness.This paper is aimed at providing some reference and thinking for the later overseas enterprises by nalyzing this case.