(Original title: Dongfeng Motor’s “new” controlling shareholder will adjust the commercial vehicle business following resumption of the brand
Financial Associated Press, May 31 (Reporter Liu Yang)Dongfeng Co., Ltd. “abdicated to give way to the virtuous”, ushered in the daily limit of Dongfeng Motor, the super real controller of the State-owned Assets Supervision and Administration Commission of the State Council.
On May 31, Dongfeng Motor resumed trading at the daily limit, and the number of orders exceeded 6 million. As of press time, the report was 6.80 yuan, and the transaction amount was 54.31 million yuan. On the news, Dongfeng Motor and Dongfeng Group both announced on the evening of the previous day that Dongfeng Group and Dongfeng Co., Ltd. signed the “Share Transfer Agreement”, stipulating that Dongfeng Co., Ltd. will transfer its 598 million shares of the company to Dongfeng Group, accounting for the company’s issued shares. 29.9% of the total, and the agreed transfer price is 5.60 yuan per share.
According to the “Share Transfer Agreement”, following the completion of this share transfer agreement, Dongfeng Group will, in accordance with the relevant provisions of the “Administrative Measures for the Acquisition of Listed Companies”, issue a partial tender offer to all shareholders of the listed company except Dongfeng Group, and the number of shares to be acquired by tender offer It is 502 million shares, accounting for 25.10% of the company’s total issued shares, and the offer price is 5.60 yuan per share to gain control over the listed company. Before this transaction, Dongfeng Co., Ltd. held 1.202 billion shares of Dongfeng Motor, accounting for 60.10% of the company’s total issued shares, and was the company’s controlling shareholder and actual controller; following the completion of this transaction, Dongfeng Motor’s controlling shareholder will be changed by Dongfeng Co., Ltd. For Dongfeng Group, the actual controller will be changed from Dongfeng Co., Ltd. to the State-owned Assets Supervision and Administration Commission of the State Council. “Commercial vehicles are our advantageous business sectors.” Dongfeng believes that following the equity adjustment, Dongfeng Co., Ltd. will focus on the passenger vehicle business, and the Dongfeng light commercial vehicle business will be directly included in the group’s management and control, “This equity interest The change will help to further improve the company’s layout of the commercial vehicle business segment and promote the high-quality development of the commercial vehicle business, and it is also a major measure for the company to continue to deepen the reform of state-owned enterprises and expand and strengthen the independent commercial vehicle business.”
As the undertaker of the group’s light commercial vehicle business, Dongfeng Motor’s main business includes the design, manufacture and sales of a full range of light commercial vehicles and powertrains. According to the financial report, in 2021, Dongfeng Motor will complete the sales of 180,000 vehicles, a year-on-year increase of 6.56%, of which the annual sales of light truck products are 160,000 units, a year-on-year increase of 3.68%; The net profit was 372 million yuan, a year-on-year decrease of 32.84%.
“This equity adjustment will help the company’s ’14th Five-Year’ strategy to achieve the goal of ‘commercial vehicle segment sales exceeding 1 million units, building a high-quality TOP1 enterprise in the industry, and taking the lead in the international market’.” Dongfeng Company Said that at present, the company’s commercial vehicle business has covered the full range of heavy, medium, light, micro, and special, and Dongfeng Group will further enhance Dongfeng Motor’s market position by increasing capital investment, strengthening internal R&D coordination and upstream and downstream coordination in the industry chain and core competitiveness, enhance its sustainable operation ability and profitability, and better create value for shareholders.
According to Bai Yiyang from the Research Department of CMB International, Dongfeng Co., Ltd., as a joint venture between Dongfeng and Nissan, mainly focused on passenger vehicles such as Nissan and Venucia, while Dongfeng Motor, a subsidiary of Dongfeng Group, mainly focused on In the field of light trucks, it also owns Dongfeng Cummins engine business, which also overlaps with the commercial vehicle business of light trucks and other commercial vehicles at the level of other subsidiaries of the group. And market value is believed to play a positive role, rather than a ‘backdoor’ return to A shares.”
On May 30, Dongfeng Group signed the LCV Assets Transfer Framework Agreement with Dongfeng Co., Ltd., Nissan Motor Co., Ltd., and Nissan (China) Investment Co., Ltd. According to the agreement, Dongfeng Co., Ltd. plans to sell light commercial vehicle assets to Dongfeng Group or its designated entities, including Dongfeng Motor Co., Ltd. held by Dongfeng Co., Ltd., 100% equity of Zhengzhou Nissan Automobile Co., Ltd., 49% equity of Dongfeng Light Engine Co., Ltd., Dongfeng Xiangyang Travel 10% equity of Dongfeng Motor Co., Ltd., and related assets of the engine business of Dongfeng Motor Co., Ltd. Shiyan Engine Branch. However, at present, Dongfeng Group has not reached a final agreement on the acquisition of the above-mentioned other light commercial vehicle assets, perhaps considering that the above-mentioned light commercial vehicle assets may overlap with the main business of Dongfeng Motor to a certain extent.
In order to avoid horizontal competition, Dongfeng Group and its controlling shareholder Dongfeng Company promised that following the acquisition, they may comprehensively use asset reorganization, equity replacement, asset sale, entrusted management, business integration, business adjustment or other legal methods to steadily promote the cooperation with Dongfeng. The integration of automobile-related businesses, in order to avoid and resolve the above-mentioned business overlap, may have adverse effects on Dongfeng Motor.