ArgentineLuomidaer “lightning” to enter the China Eastern
November 20th, 2007 | by cm8295 |Announced finance 647 million US dollars to buy China Eastern Holdings (China Eastern, 0581. HK) 28% interest shortly after, the world’s largest steel producer AfghanistanLuomidaer Corporation (ArcelorMittal) and “Flash” overweight 1.3 billion shares , and in this domestic well-known private enterprises to solicit their command. This is also holding for the first time in a domestic steel enterprises.
HKEx latest notice issued by the changes in ownership, in the November 9, AzerbaijanLuomidaer company shares held by China Eastern about 820 million shares on November 9 in future, the company increased holdings of about 1.32 billion shares the latest holdings total of 2.14 billion shares. At the same time, this steel giant in China Eastern’s stake from 28.02 percent at one stroke to 73.13%, achieving Holdings. Before “MBO Wang Gang,” said Chairman of the China Eastern Hawkes far China Eastern shares held by many small happened to be 1.32 billion shares, accounted for 45.11 percent, the industry thus speculated that AzerbaijanLuomidaer companiesholdings of shares is most likely far from Hawkes. Although the ArgentineLuomidaer unclear holdings price, but as a reference, the company had a 647 million US dollars at high prices to buy China Eastern in full before the second largest shareholder Ning - Ning Chen hands of the 820 million shares of equity .Converted to share 6.15 Hong Kong dollar, the acquisition price than China Eastern suspension before 5.4 Hong Kong dollar 14% premium.
Thus, AzerbaijanLuomidaer companies finally are closely guarded in China’s steel industry to find a crevice. And compared to the original shares Valin pipeline, AzerbaijanLuomidaerin compensation Holdings aspiration and its strategic significance is unusual.China Eastern on the two major shareholders - Ning - Ning Chen and Hawkes far, they equally abundant harvest by the acquisition. The shares, China Eastern suspension before the stock was 5.4 Hong Kong dollar, compared listed at the beginning of the 2.75 Hong Kong dollar has almost doubled.
Rather is that in the transfer of China Eastern stake ago, Ning - Ning Chen and Yuan just Hawkes scenes staged for the holding of the “serial” and even once for this court. While the media Hawkes far have said, there was indeed a number of enterprises and institutions linked with China Eastern, open to question the equity of cooperation, China Eastern hopes to find one pair of proficiency in the capital markets partner, as long as the conditions are right, even if the other party holding also the expense.
“This is the infiltration of foreign investment in China’s steel industry is a signal. Due to the acquisition of the holding, prior to the Valin pipeline than the equity acquired greater significance to the future domestic steel industry will be changes in the pattern of a certain impact.” Orient securities Bao-Feng Yang told reporters. “But considering the domestic steel combined capacity has reached 500 million tons, China Eastern in which occupy only a small part. Coupled with the current state of the iron and steel production capacity to restrict investment policies, the future expansion of production capacity can not casually, the actual impact is relatively limited. “Bao-Feng Yang said.
“The domestic steel industry holding the impact will not be too great, and after all, China Eastern is private enterprises, mainly useful person mainly in the market does not have enough influence.” Shanghai steel Wu, general manager of Information Consulting Ltd. an article yesterday in a press conference that. In his view, Mittal This can be understood as an integral part of the global strategy means that its entry into China’s strategic another step forward.
After several ArgentineLuomidaer profile acquisitions in China
Time takeover target price
In July 2005 Hunan Valin pipeline 37% stake in more than 2.6 billion yuan
In February 2006, purchasing Shandong Laiwu Steel Group of 354 million shares 2.086 billion yuan
In November 2007 China Eastern 28% interests of 647 million US dollars
Former opponent, “both leaver” China Eastern and greet “third party”
Is the so-called “fluctuate from time to time.” China Eastern had to play right Surrounded by holding the “iron Princess” Ning - Ning Chen and “MBO Steel King” Hawkes far, now has a complete departure, and the other may also have been selling shares at high prices, while ArgentineLuomidaer then realized his dream to become the “third party.”
As Hong Kong’s capital market this year on a big show by the merger of attention, China Eastern control of the dispute began in the first place to promote its listing of the two hero: Hawkes far and Ning - Ning Chen.By the end of 1999, as director of the much-led Hawkes completed the core assets of China Eastern’s shares subsidized steel to the West. 2002??In 2002, capital Hawkes far with the operation of the Ning - Ning Chen longer cooperate. In 2004, China Eastern listed in Hong Kong, and created two Regal shareholders, which is far and Ning - Ning Chen Hawkes. However, this year, Ning - Ning Chen launched acquisitions, trying to replace the control of China Eastern Hawkes far. Two subsequent appeals due to a variety of problems to the Hong Kong Stock Exchange and to prosecute to the court, the conflicts intensified. However, Ning - Ning Chen acquisition finally failed, she herself was dismissed executive director post. Since then, Ning - Ning Chen immediately announced that AlbaniaLuomidaer the transfer of ownership. China Eastern said the press release issued later, I believe AfghanistanLuomidaer international perspective and global business experience will help enhance China Eastern’s overall competitiveness.The company in accordance with the established direction of the development will be committed to 2010 before upgrading its overall production capacity to 10 million tons above.
With ArgentineLuomidaer further Holdings, the former controlling stake in the dispute was finally “third party” intervention of the quietly ended. Because of this merger opera staged in the process of China Eastern stock has climbed steadily, the ArgentineLuomidaer more on this basis, premium acquisitions, it has no merger itself, and the loser, the only suspense left is the original holding the right to dispute what to what?
