Comparesion About Gain And Loss From Two Acquisitions About New Energy Battery Of Kan

The main business of Kan is speciality paper manufacturing,belonging to the traditional paper industry.For the sake of reducing market risk and enhancing competitiveness,Kan has two choices for introducing in the production,nickel metal hydride battery or lithium battery in the repaid growth of new energy industry,to the formation of dual structure which help by enterprise megering and restructuring.In this way,Kan expects that the new profit point of company can be cultivated.Before the second merger and acquisition,the actual controller of the company has been changed.This paper adopts methods of literature analysis,cases' comparative analysis,empirical and normative analysis,etc.After fully reviewing and summarizing the relevant theories of mergers and acquisitions,this paper analyzes and elaborates the controllers' motivation,process and results of two mergers and acquisitions under the control of two actual controllers.And this paper also explores the logic of mergers and acquisitions dominated by two actual controllers and their understanding and differences in maximizing the value of the company.Through analysis,this paper finds that the reason for the failure of the first merger and acquisition of Kan is that the company's former controller Wang Bailang injected the assets of the company which producted nickel-metal hydride battery into the listed company from the perspective of the Kan.It was not be grasped at the right time.Lagging behind the development trend of the industry and being overly optimistic in the valuation of the underlying assets which resulted in the failure to honor the performance commitments after the reorganization and resulted in the inability of complementary effects of the nickel-metal hydride battery business and the specialty paper business to,Instead,the loss of nickel-metal hydride battery business led to a decline in the performance of listed companies.The second merger and acquisition led by the company's actual controller,Cai Yang,jumps the opportunities of the new energy industry,intended to inject company assets for production of lithium batteries into the company and created possibilities for the company's rapid development in the future.The target company had relatively large financial risks and the asset valuation was high.In this restructuring plan,because of the listed company's excessively high equity pledge rate and the excessively low corporate control power,there was a problem that Kan's control power was unstable,which might be concerned and questioned by the China Securities Regulatory Commission.Comparing the logic of the capital operation between Wang Bailang and Cai Yang,we found that they had two different understanding of the company's value growth to its maximization.Wang Bailang thinked that the idea of "selling apples instead of selling apple trees" focused more on the increase of the value of the parent company Kan Group's overall assets and regarded the operation of the listed company Kan as the part of the parent company's product operations.Through the separation and reorganization of Kan,it seeked the best price and the appropriate time to sell,and realized the equity return of its parent company,Kan Group.After gaining control of the Kan Group,Cai Yang divested non-performing assets and re-arranged the new energy industry.He tried to adjust the dual-core structure to the new energy industry and relied on the growth of the value of the subsidiary company Kan to increase the equity income of the parent company.In the process of managing the market value of the subsidiary Kan,it realized the value-added sales of the parent company Kan Group's holdings.Through the analys'is and research of the two mergers and acquisitions of Kan,this paper believes that:(1)The company's investment about industry,including mergers and acquisitions,should have a good grasp of the market situation,policy orientation,and industry trends in advance;(2)The focus of capital operation should be the growth of the company's value,and financial instruments should serve the entity enterprise,avoiding to take off to the virtual which will cause the enterprise financial crisis.(3)Mergers and acquisitions should truly meet the trend of enterprise layout and market development,and achieve a multi-win result for each party,especially the interests of minority shareholders.This paper which analyzes and concludes the case of two mergers and acquisitions reorganization of Kan,enriches existing research on cross-industry mergers and acquisitions and reorganization cases,and provides useful reference for listed companies' capital operations such as industrial investment,mergers and acquisitions in the future.It really has the certain practical significance.