Weichai’s backdoor made Hunan torch shareholders 25% profitable, and the stock price of the Hunan Torch, which is currently suspended, has also risen to 8.9 yuan.
After nearly two years of planning, the domestic diesel engine production "King Wang" - Weichai Power (2338.HK) finally landed on the A-share market. A few days ago, Huai Diesel Power had submitted a capital application to the Issuance Review Committee. The appraisal committee has also decided to review the conversion plan for the conversion of Weichai Power on March 27, 2007.
S Xiang torch shareholders profit 25%
Weichai Power (2338.HK) disclosed in its report that the main content of the merger and acquisition and absorption merger plan is that: Weichai Power will issue A shares to all existing shareholders of the Hunan Torch other than Weichai Investment. Achieving the swap and absorption of the merger with the Hunan Torch, and at the same time canceling the Hunan Torch, Weichai Power is the surviving company listed on the Shenzhen Stock Exchange after the completion of the merger.
Weichai Power will exchange shares with Hunan Torch. Weichai Power's share swap price is 20.47 yuan per share, Hunan Torch Stock Exchange price is 5.80 yuan per share, and the ratio of shares is 3.53:1, ie 3.53 shares of Torch A Shares can trade 1 share of Weichai Power shares.
The reporter looked at the quoted price of Weichai Power at the Hong Kong Stock Exchange. As of March 23, the stock price of Weichai Power closed at HK$38.65. Based on the closing price of 8.9 yuan and 3.53 shares before the suspension of the S Xiang torch, the tradable shareholders of the S Xiang Torch are equivalent to converting Weichai Power shares at a price of 31.47 yuan, with a profit of approximately 25% per share.
For the purchase of Hunan Torch and major shareholders
In the industry, it was widely reported that Weichai Powers did not hesitate to rebel with China National Heavy Duty Truck Group for the acquisition of the S Xiang torch.
It is understood that the Weichai Power Plant, the controlling shareholder of Weichai Power, was confirmed by the then National Economic Council in 1984 as a designated diesel plant for China National Heavy Duty Truck. It is wholly owned by China National Heavy Duty Truck.
In the same year, in order to solve the “absence†of China's auto industry, China’s heavy-duty truck affiliate company imported Steyr technology from Austria’s Steyr, and Austria’s full-scale transfer of Steyr 91 series vehicles and WD series engine products and processes. Standards and other aspects of technology. China National Heavy Duty Truck Group officially settled the Steyr engine project at Weifang Diesel Engine Factory, which laid a solid foundation for WeiChai's development.
After the outbreak of the Delong crisis in 2004, the quality assets of the Hunan Torch also attracted the interest of China National Heavy Duty Truck and Weichai Power. At that time, the Hunan Torch owned "four gold assets", namely Shaanxi Heavy Duty Truck, Fast, Zhuzhou Spark Plug and Dongfeng SUV. Among them, Shaanxi Zhongqi, Fast Transmission and spark plug business have become star enterprises with industry influence. The Hunan Torch has more than 51% stake in Shaanxi Auto and Shaanxi Fast, and the two companies are very profitable.
If Weichai Power successfully acquires the Hunan Torch, it will indirectly control Shaanxi Steam, posing a threat to China National Heavy Duty Truck Group. Therefore, in the pre-acquisition period, China National Heavy Duty Truck, as the largest shareholder of Weichai Power, firmly opposed its acquisition of the Hunan Torch. However, Weichai Power was not moved, and it still obtained control of the listed company through its Weichai Power (Weifang) Investment Co., Ltd.
A brief history of heavy trucks and Weichai's grievances
March 2004
Weichai Power, a subsidiary of Weichai, succeeded in going public in Hong Kong, and the “independence†will of Weichai Factory gradually increased.
Early 2005
CNHTC intends to obtain an overall listing in Hong Kong through Weichai Power's equity held by Weichai Plant. It was rejected by Weichai Factory and the contradiction gradually deepened.
August 2005
Weichai Plant acquired the Hunan Torch through its subsidiary Weichai Investment, and indirectly controlled Shaanxi Heavy Duty Truck to build its own heavy-duty automotive industry chain.
October 2005
CNHTC has regained control of the Hangzhou engine plant that had been handed over to the Weichai plant.
January 2006
CNHTC stopped purchasing engines from Weichai Power and the relationship between the two parties was completely broken.
March 20, 2006
The State-owned Assets Supervision and Administration Commission of Shandong formally released the equity relationship between the two companies.
View related topics: Assembling: Auto Parts Giants Hunan Torch
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