The Research On Asset Acquisition And Tunneling In The Process Of Private Placement

Private placement has become an important financing way for listed companies in the capital market of china after split-share structure reform.Private placement has many advantages,such as few issue restrictions,simple issue process,the amount of financing is very flexible and so on.In addition,private placement can help the overall company listing,acquire high quality assets of large shareholders or other companies,financing for company project and so on.However,as private placement involves the redistribution of equity between the original shareholders and new shareholders,major shareholders and minority shareholders,and there are many imperfections in the relevant policies and regulations of private placement in china,it provides opportunities for the controlling shareholders carry out the benefit transfer by private placement,the interests of minority shareholders have been seriously violated.At present,many scholars in china has studied about private placement and benefit transfer,but most of them are empirical research,case studies are very few.We can analyze the specific motive and way of interest transmission in the process of private placement through the case study.This can also provide some research direction for the subsequent analysis and research.This paper chose Qtone Education acquired the Continuing Education Technology and Xi'an Xi Yue by private placement in 2015 as the object of study.This paper discusses the motivations,methods and economic consequences of the benefits transfer in the process of private placement through the combination of theoretical analysis and case analysis.This paper found: in the process of Qtone Education acquired the Continuing Education Technology and Xi'an Xi Yue by private placement,controlling shareholders manipulated the new shares issued price,acquired poor quality assets with high premium,a large number of selling stocks after private placement,the interests of minority shareholders have been seriously occupied.In addition,this paper also studies the economic effect of benefit transfer.The result shows that there was a positive shareholder's wealth effect in the short term after the announcement of the private placement,which is consistent with the previous research conclusion.The comparative analysis of the financial situation of the listed companies before and after the issuance of private placement,it was found that the acquisition of assets does not show positive synergies.