Case Study On The Scramble For Control Right Of China South Glass Holdings Ltd

In recent years,with the continuous development of the capital market,more and more companies choose to acquire the advantage resources of the capital market through the secondary market equity acquisition,and the behavior of acquiring the whole company through the acquisition of the company’s shares and seizing the company’s control right has become a hot way of capital pursuit,while the competition for the control right of listed companies has always been the securities regulatory authorities,listed companies and the general public Important issues for investors.The research on this topic is of great significance to regulate the behavior of all parties in the control struggle of listed companies and to maintain the healthy development of the capital market.This paper selects the case of the control right competition of China South Glass Holdings Ltd as the research object,adopts the method of literature research and case study,and based on the theory of control right competition,on the basis of the introduction of the development of China South Glass Holdings Ltd and its business performance change process,expounds the process and result of Baoneng’s acquisition of China South Glass Holdings Ltd shares in the capital market and its control right competition,This paper analyzes the reasons why China South Glass Holdings Ltd has become the target of control in the capital market from the aspects of the deviation between the intrinsic value and the market price,the ownership structure and control right structure,the management behavior and the profit-seeking nature of the capital,and then analyzes the return of shareholders’ investment before and after Baoneng’s involvement in the control right competition of China South Glass Holdings Ltd by using the long-term value investment of the stocks with the buying and holding investment strategy The impact of an event on investors.After that,it discusses the experience and lessons that executives(Founders)should learn from the event,the gain and loss and Enlightenment of acquirers in the event,the possible impact on the follow-up development of China’s stock market caused by the fight for control rights,and the Enlightenment of securities regulatory authorities in this event.Through the case study of the control right competition of China South Glass Holdings Ltd,it is found that the operating performance before and after the control right transfer tends to be worse,and the short-term fluctuation of the stock price is large;the early equity financing process leads to the decentralization of the company’s equity structure,the dilution of the founder’s and management’s equity and the weakening of the company’s control right,which is an important reason for the loss of the control right.In addition,the deviation between the intrinsic value and market value of China South Glass Holdings Ltd,the behavior of senior management and the profit motive of Baoneng are also important reasons for China South Glass Holdings Ltd to become the target of control struggle;There is a lack of regulatory behavior of securities regulatory authorities,so it is necessary to strictly regulate the behavior of both sides competing for control power to ensure the legal compliance of this behavior.