A Case Study On The Private Convertible Bonds Used In M&a Financing Of Secote

The design of the M&A payment plan is a key part of the M&A.Currently,cash,shares,and assets are the mainstream payment methods in China's M&A market.Since 2018,in order to improve the floundering market environment,the CSRC has continued to relax M&A and refinancing policies.In November 2018,stock market in China ushered in the first pilot case of private convertible bonds,that is Secote CO.wholly owned acquisition success in Lingou,of which the consideration paid for private convertible bonds accounted for 60%of the total payment consideration.This article takes this M&A cases of Secote as the research object,and goes deeply into the specific application of the private convertible bonds as a financing tool for mergers and acquisitions of listed companiesFirstly,this article adopts the literature research method,introduces the research background and research significance in the introduction,sorts out the theoretical foundation of directional convertible bonds and the research trends at home and abroad,expounds the research ideas and innovation points of the article,and lays the foundation for subsequent research.Through the case study method,the case of Secote shares and the design of its merger and acquisition plan are specifically introduced,and the motivation for the issuance of directional convertible bonds and the design of specific terms of bonds are analyzed.In order to better evaluate the use effect of directional convertible bonds,this article uses event research method and comparative research method to compare and analyze the short-term market performance of Secote shares and comparable cases using different payment methods for mergers and acquisitionsAfter analysis,directional convertible bonds can bring a positive market response,provide game space for both parties to the M&A transaction,make up for the lack of traditional payment methods,improve the difficulty of financing in the weak market,and optimize the M&A process At the same time,the risk of repayment,accounting and compliance still need to be guarded against.Finally,this article summarizes the successful experience worth learning from this case Listed companies can judge the current development status of enterprises according to certain financial indicators to choose the appropriate payment method,and fully use the terms of directional convertible bonds to reduce risks and costs.Besides,enterprise can enrich financing methods under the leadership of regulatory agenciesThe research in this paper is conducive to further enrich the theory of financing methods and fill the gaps in the application of private convertible bonds.The private convertible bonds continue to be used in the context of M&A,which has important significance.