The Study Based On The Tender Offer Of Small And Medium Shareholder Of ST Biochemical

In the process of tender offer in China's capital market,the participation degree of medium and small shareholders is generally not high,and the participants are mostly internal major shareholders or external capital.The tender offer of ST biochemical is different from the traditional major shareholder acquisition.It is the result of collective action of small and medium investors.Those ST companies with sluggish growth,flat profits and low management efficiency,it is necessary to strengthen the governance role of medium and small shareholders in order to prevent the uncertain risks or regulatory risks of major shareholders' equity or control rights.In order to reduce above risks and strengthen the protection of the rights and interests of medium and small shareholders,the tender offer of medium and small shareholders opens the "door" for them to participate in the corporate governance.It is useful for the two parties to coordinate and communicate with other shareholders to study the internal reason of the tender offer.When minority shareholders actively participate in the tender offer,the open market operation can play the role of supervising the governance of listed companies.This paper based on the ST biochemical of study,in which the initiator of tender offer is the minority shareholder of zhejiang private investment.This paper analyzes the internal and external causes,the specific process and the effect change after the successful acquisition.From the external motivation,the main reason of the tender offer of zhejiang private investment group is to expand the industrial chain and control industrial capital achieve the combination of production and finance.It is can improve the core competitiveness by acquiring scarce technical resources.From the finternal factors,the target company growth sluggish,profit flat,and management efficiency low,which leads to its development prospect is worrying and it is urgent to mprove value.Meanwhile,the major shareholder equity risk,the supervision risk and the medium and small equity equity rights protection risk of the target company need to reduce its governance risk,which provide the opportunity of the tender offer.By adopting the aggressive approach of tender offer,acquiring firm shall conduct sufficient and reasonably determine the offer price and the offer quantity.Other minority shareholders in the market tend to behave as"prisoner's dilemma" in the process of tender offer,but the rational minority shareholders in the market are more likely to accept the offer when the offer price has certain premium.After successful acquisition,short-term operation,the operation performance has certain improvement effect,the market performance reflects well.The case study has reference value to the participation of minority shareholders in corporate governance and enriched China's tender offer and the theory of corporate governance.