On May 27th, XCMG Construction Machinery Co., Ltd. (referred to as "XCMG") made a decisive progress in the overall listing. XCMG Construction Machinery Co., Ltd. (referred to as "XCMG" 000425.SZ) absorbed and merged the controlling shareholder XCMG Co., Ltd. and The related-party transactions were reviewed and approved by the Restructuring Committee of the China Securities Regulatory Commission.
The company's stock is about to resume trading.
On April 7, 2021, XCMG Machinery was suspended from trading due to planning a major asset reorganization, and planned to issue shares to all shareholders of the controlling shareholder XCMG Co., Ltd. to absorb and merge XCMG Co., Ltd.
On April 19 of that year, the company convened the first board of directors to review and announced the major asset restructuring plan, etc., and then resumed trading from the opening of the market on April 21.
More than 5 months later, the company held the second board of directors to review and announced the draft of major asset restructuring.
After inquiries and responses from the Shenzhen Stock Exchange, acceptance by the China Securities Regulatory Commission, and two feedbacks, according to the latest transaction plan disclosed on May 17 this year, the final transaction price of XCMG's 100% equity is 38.686 billion yuan, according to the issue price of 5.55 Calculated at RMB/share, the number of issued shares is 6.970 billion shares.
After this transaction, all XCMG Machinery shares held by XCMG Co., Ltd. will be cancelled, and XCMG Group will become the controlling shareholder and actual controller of the listed company.
After the completion of this transaction, the listed company will undertake and inherit all the assets, liabilities, business, personnel and all other rights and obligations of the merged party XCMG Co., Ltd., and the excavation machinery, concrete machinery, mining machinery, tower cranes and other projects of XCMG Co., Ltd. The supporting assets of machinery production will be injected into the listed company as a whole, which is conducive to optimizing the industrial structure and improving the industrial layout.
In the future, the listed company will further enhance its profitability and asset scale through its excellent management experience, and provide a solid guarantee for the continuous operation of the listed company.
Brokerage analysts believe that according to the pro forma data of the absorption merger and related party transaction report, after the overall listing of XCMG construction machinery assets, the income of the listed entity and the net profit attributable to the parent in 2021 are estimated to be 116.77 billion yuan and 8.21 billion yuan respectively, which are respectively higher than the transaction. The former increased by 38.47% and 46.19%. While the scale is expanding, the future profitability is expected to continue to improve.