The Case Study On Merger And Acquisition Of B Share Listed Companies

Capital market B-shares are established in China in order to raise foreign capital in the period when China's RMB is not convertible and foreign capital cannot enter the A-share market.Along with the increasing of our foreign exchange reserves,overseas financing increasingly convenient and the rapid development of the QFII,the financing capacity of the B-share market has been gradually lost.In order to not be eliminated in the fierce market competition and achieve company development,the listed companies in the B-share market are in urgent need to open new financing channels.The financing difficulties of the B-share market have formed a serious obstacle to these enterprises.Only by exploring a correct and practical way for the development of China's capital market can play a key guiding role on solve the problem of B-shares in the future.With the case of the merger of shanghai yang sun investment co,.Ltd by Shanghai SmiHolding Co.,Ltd as the object of study,and after reviewing the domestic and foreign theories and literatures related to the study of exchange absorption merger and B-share,this paper studies the motives and the ownership structure and businesses around the mergers and acquisitions.We found that the merger not only solved the remaining problems of shanghai yang sun investment co,.Ltd's B-share,but also integrated the environmental businesses of the Shanghai SmiHolding Co.,Ltd,thus rationalizing the business of major shareholders and playing the capital market allocation function better.Secondly,based on the analysis of stock price trend and event study,it is found that the program has been recognized by the market.Thirdly,this paper analyzes the rationality of the merger scheme from five aspects:profitability,convertible price,issuing price,exchange ratio and cash option.It is found that the scheme has protected of the interests of both shareholders better,and has good rationality.Finally,this paper summarizes the important factors of the successful cases,and analysis the applicability,proposes four conditions the company should have to copy this pattern.Through the case study,this paper gives the following enlightenment:(1)A-share exchange to absorb merger B shares is an effective way to solve the problem of B-shares;(2)it is reasonable to determine the stock exchange price and the exchange ratio by market price method;(3)the design of the scheme structure is the key to the success of merger.