The hottest Rex lighting sold 70 shares to protect

Rex lighting sold 70% of its equity for 5.6 billion yuan: help major shareholders "protect the shell"

China Economic Weekly, guozhiqiang, Beijing report

figure | Vision China

Rex lighting will change its ownership again

on the evening of August 11, Rexroth lighting () announced that it had reached a strategic cooperation with international investment institution KKR to sell 70% of the equity of Rexroth lighting's China business for $794million. At the time of delivery, the company will receive a total of 5.559 billion yuan in cash and share consideration, including 4.611 billion yuan in cash

after the completion of the delivery, KKR will hold 70% of the equity of Rex lighting's China business, and Rex lighting will have the remaining 30% equity and obtain cash consideration. On the premise of approval and completion of the settlement, the board of directors of Rexroth lighting announced that it would pay a special dividend of no less than HK $0.9 per share to the shareholders of Rexroth lighting

as one of the largest lighting enterprises in China, the industry believes that the brand value of Rex lighting, a gold lettered signboard, has exceeded 10 billion. According to this view, the equity transaction of Rex lighting does not seem to be cost-effective? What is the purpose of discount sale

70% equity is sold at a low price

in the capital market, Rex lighting is a listed company with a story, which is jokingly called the capital plaything sample

since its establishment in 1998, the equity dispute of Rexroth lighting has never stopped. From the initial three founders of Wu Changjiang and later investors, the appearance of oxidation treated materials of this product is snow-white silver Saifu, especially if the above conditions are normal. After being listed in Hong Kong in 2010, Schneider, dehuorunda and other capital have successively settled in, and the battle for equity of Rexroth lighting has intensified. Until January 2015, founder Wu Changjiang was arrested on suspicion of misappropriating funds and sentenced to 14 years' imprisonment in 2016. Some people have calculated that Wu Changjiang will be 65 years old when he is released from prison

although equity disputes continue, Rexroth lighting is still the leader of domestic lighting enterprises at present

on June 26, 2019, the (16th) world brand conference hosted by the world brand lab released the 2019 analysis report of China's 500 most valuable brands. In this year's ranking, two brands were selected in the lighting appliance industry: Rex lighting and Foshan Lighting. Among them, the brand value of Rex lighting in 2019 was 32.695 billion yuan, an increase of more than 26.8% over last year's 25.766 billion yuan. It has ranked first in the lighting industry for eight consecutive years, rising from 182 in 2018 to 180

market analysts said that the brand value of Rex lighting has long exceeded 32 billion yuan, and the final transaction price is extremely incomprehensible: KKR took 70% of Rex China's share price for less than 800 million US dollars, and Rex lighting's assets were seriously underestimated and sold at a low price

however, market institutions and investors do not think so. Since the news of the equity sale came out, the share price of Rexroth lighting once rose sharply from HK $0.7 per share to HK $1.27 per share after the opening on August 12, and then the share price fluctuated to close at HK $1.1 per share, up more than 57%

China Economic Weekly found that as of the close of August 15, the share price of Rexroth lighting was HK $1.02 per share, up 45.7%, and the total market value of the company soared to HK $4.311 billion in four trading days

why did Rex lighting choose to sell the company's core assets at this time

in the afternoon of August 12, Wang Donglei, chairman of Rexroth lighting, responded in an interview with the media that the price of Rexroth lighting in Hong Kong stocks had been in a depressed state, and its market value had been only HK $2.3 billion for a long time. The purpose of being an enterprise is to repay shareholders, but I can't solve the contradiction between performance growth and stock price decline in the Hong Kong stock market. Now some investors are willing to buy at a good price to maximize the interests of shareholders, so they choose to sell

equity sale is intended to help *st Dehao Baobao shell

is the reason for selling at a discount really so simple

it is reported that Guangdong Dehao Runda Electric Co., Ltd. (hereinafter referred to as *st Dehao), another listed company controlled by Wang Donglei and the single largest shareholder of Rex lighting, is facing the heavy task of lifting its hat this year. As of December 31, 2018, *st Dehao made it turn clockwise through its wholly-owned subsidiary Dehao. Runda International (Hong Kong) held 20.57% of Rex lighting shares

in the morning of August 12, *st Dehao () announced that it had received a notice letter from Rex lighting on August 11, announcing that Rex lighting had decided not to continue to promote the transaction of *st Dehao's acquisition of its lighting business in China

this means that the major asset restructuring planned by * ST Dehao since the beginning of last year has failed. On the same day, Rex lighting revealed that KKR would acquire 70% of the equity of Rex lighting's China lighting business

*st Dehao's announcement shows that the company's net profits in the first quarter of 2017, 2018 and 2019 were -971 million yuan, -581 million yuan and -79.7502 million yuan respectively

the above market participants pointed out that due to losses for two consecutive years, the previous Dehao Runda has become today's *st Dehao. If the company cannot turn losses into profits this year, it also means that *st Dehao will face delisting risk

with losses for two consecutive years, *st Dehao will be warned of delisting risk. For Wang Donglei, the actual controller of *st Dehao, his primary goal in 2019 is to protect the shell of *st Dehao

in fact, *st Dehao Baobao has already started. On July 10 this year, *st Dehao announced that after a comprehensive evaluation, the company's management recommended that the board of directors agree and authorize the management to implement the plan safely, and handle the chip manufacturing business as soon as possible by means of shutdown and conversion, striving to complete it in the third quarter of 2019

this also makes the outside world regard *st Dehao's closure of the factory GB18580 (2) 001, the formaldehyde emission limit in LED chip wood-based panels and their products, as a protective measure

there is another voice in the market that Rexroth lighting's equity sale is intended to revitalize the two listed companies

it is worth noting that, on the premise of approval and completion of the delivery, the board of directors of Rexroth lighting will announce a special dividend of no less than HK $0.9 per share to the shareholders of Rexroth lighting. Based on the base number of Rex lighting shares held by *st Dehao, converted at HK $0.9 per share, it will bring an investment income of HK $783million to *st Dehao, which will have a positive impact on *st Dehao's hat lifting

| Zhang Yan

editor | Zhang Wei

China Economic Weekly - economic copyright works