Study On The Operation Mode And Effect Of Home Inns Returning To A-share Market

The return of Chinese concept share(CCS)is generally subject to three steps:privatization delisting,VIE structure demolition,and domestic listing.Most of the companies that have successfully returned to A-shares have adopted this “three-step” return mode to achieve the return,while Home Inns and Xueda Education are directly acquired by A-share listed companies,and achieve A-share listing at the same time as privatization delisting.In contrast,this “one-step” return mode has the advantages of less time consuming and higher efficiency.Compared with Xueda Education,the merger of Home Inns and BTG Hotels is a horizontal merger,which has certain advantages in terms of integration speed,resource utilization and synergy.After the return of some CCS,there have been negative news such as shareholders using high valuation arbitrage,falling profits and delisting crisis.Compared with these companies,the profits of listed companies have increased year after year,and the overall performance is better.How does Home Inns that has fallen in stock price and is trapped in a transitional period open up a new model? What is the motivation for mergers and acquisitions to implement mergers and acquisitions? What are the specific steps of the return operation mode of Home Inns? What are the advantages and references of other return operating models?What is the performance of listed companies after the reunification? The successful return of Home Inns is worth exploring.Therefore,This paper chooses the case of Home Inns returning to A-shares.On the one hand,through the exploration of the “one-step” return mode of Home Inns,it can provide an efficient return path for the return of high-quality Chinese stocks.Hope the company analyzes whether it is returning or not,and chooses which way to return to rational thinking.On the other hand,it analyzes the M&A effect achieved by the A-share listed company BTG in the horizontal merger and acquisition of the hotel,and gives some enlightenment to the A-share listed company in China,as well as investors,and hope that they can make investment decisions reasonably according to their own circumstances.This paper uses comparative analysis,financial indicator analysis and literature analysis methods to sort out the process and operation mode of Home Inns' return to A shares,andmake a comparative analysis with “three steps” return mode from three aspects: privatization delisting,dismantling VIE structure,and re-listing in China,and the “one-step” return model of Xueda Education to find out the advantages of the return model of Home Inns.Finally,from the aspects of financial performance and non-financial effects,explore the impact of the return of the hotel on the relevant subjects to verify the return effect.Among them,the non-financial effect analysis,from the original Home Inns and BTG after the acquisition of the hotel,mainly including the analysis of the privatization premium of the original Home Inns shareholders,Home Inns and BTG business indicators analysis,analysis of the changes in the market value of the company after the merger;financial performance analysis,from the analysis of the financial indicators of BTG after the return of the Home Inn Hotel.Finally,This paper draws the following conclusions: Home Inns' return to A-shares' “one-step” return operation mode is short time and high efficiency,reducing the uncertainty of each link,alleviating the financial pressure through stock exchange transactions and raising matching funds,and exerting the positive effect of mergers and acquisitions.After the acquisition of Home Inns by BTG,the scale effect and synergy effect appeared,the strategic effect was obvious,and the business performance was good.This “one-step” return mode,which is acquired by A-share listed companies,is worthy of reference for high-quality CCS companies that want to return to China's capital market,and A-share listed companies that have strategic needs for mergers and acquisitions.Therefore,this paper summarizes the experience of the successful return of Home Inns,including the direct participation of mergers and acquisitions in privatization,rational use of A-share listing platform;easing financial pressure through stock exchange transactions and raising matching funds;conducting substantive mergers and acquisitions to reduce return risks.There are still some issues to be aware of in the promotion of successful experience,including the need to find strategically coordinated A-share listed companies,and the acquirers must have certain financing capabilities and the applicability of relevant policies and regulations.