Case Study Of Suzhou Secote Precision Electronic Co., Ltd.'s Directed Convertible Bond M&A

The trend of China's M & A market and refinancing market has always been the focus of everyone's attention,but as China's economic development enters a bottleneck period,the continued downturn in the stock market has led to an increase in the risk of M & A,which has led to the development of China's M & A market and the refinancing market.Trough.In this context,the regulatory authorities have carried out a series of innovative pilot work.Directed convertible bonds have also appeared for the first time in the mergers and acquisitions of listed companies.In its merger and acquisition plan,Sateng uses targeted convertible bonds as a payment tool for mergers and acquisitions.,Has become the first case of China's A-share market directed convertible bonds mergers and acquisitions.This article takes the acquisition of Sai Teng shares of Lingou Technology as the research object.First,by reading domestic and foreign literature,the current research results of M & A payment methods and convertible corporate bonds are sorted out,and the related concepts of directional convertible bonds are defined.The background and development history of directed convertible bonds were introduced in detail.Next,the parties involved in the case,the M & A process,the payment scheme,etc.were described in detail,and then the analysis of the case was entered.The analysis part of the article can be divided into four parts.The first part analyzes the motivations of mergers and acquisitions from the perspective of corporate development strategy.It can be found that the main motivation of Saiteng is to broaden its own business development space and give play to the synergy of itself and the target company;The second part analyzes from the perspective of the selection of payment instruments for mergers and acquisitions.It can be found that the issue of targeted convertible bonds can reduce the cash flow pressure,debt repayment pressure and financing cost that companies will face,and can protect the interests of both parties through their tool characteristics and policy advantages;The third part analyzes the key terms of directional convertible bonds and compares them with other financing methods;the fourth section analyzes the risks that may exist in directional convertible bonds mergers and acquisitions,mainly including control rights dilution risks,follow-up Issuance risk,secondary market game risk,directional convertible bond default risk,and risk of stock price fluctuation caused by regulatory policies.The end of the article combines the above analysis,summarizes the enlightenments we can get from this case,and puts forward corresponding suggestions from the perspective of clause design and different market entities.I hope that we can target the application of convertible bonds in the future.Help with development.