"After SAIC acquired Nanjing Automobile, there was also a big deal in the acquisition." After Shanghai Auto and Nanjing Automobile signed a cooperation agreement on December 26 last year, a person familiar with Shanghai's automobile affairs revealed to this reporter. Sure enough, less than a week later, a single new acquisition of Shanghai Automotive (600104) surfaced. On January 3, both Shanghai Automotive and Shanghai Diesel (600841) announced that on December 29, 2007, Shanghai Automotive and Shanghai Electric Group Co., Ltd. (“Shanghai Electricâ€) signed a “Share Transfer Agreement†in Shanghai. , Shanghai Automotive acquired 50.32% of the shares in Shanghai Diesel held by Shanghai Electric. Shanghai Electric no longer holds any shares in Shanghai Shichai. In this way, Shanghai Automotive will join Shangchai’s shares as a controlling shareholder.
Shanghai Auto "makes big"
Shanghai Auto’s transaction price with Shanghai Shangchai’s shares is based on the net assets of Chaigu Sept. 30, 2007, taking into consideration factors such as ROE, price-to-earnings ratio, and profit and loss during the relevant period and possible loss due to asset adjustment. The two sides negotiated a settlement of RMB 9.2342 billion, but the price must be approved by the State-owned Assets Supervision and Administration Commission of the State Council.
Some securities analysts believe that the total amount of shares transferred from Shanghai Electric to Shanghai Auto was 242 million shares, and the price converted into shares per share was less than 3.82 yuan, while Shangchai’s daily limit was closed at 19.99 yuan on the 3rd. Only equity investments The income is close to 4 billion yuan, SAIC can be said to be "make big."
Due to the huge price gap, it remains to be seen whether the approval of the State-owned Assets Supervision and Administration Commission of the State Council can be observed. Previously, Daimler failed to pass through the targeted acquisition of shares in Foton Motor because of low prices. However, some analysts pointed out that, unlike Foton’s private placement, Shanghai Electric’s shares transferred to Shanghai Automotive are state-owned assets, and there is no problem of selling assets. In addition, SAIC obtained relevant government departments during the acquisition of Nanjing Auto. With the support of SAIC Motor, the acquisition of automobile-related assets by government agencies is also a pleasure for the government departments. Therefore, the transfer of Shanghai Diesel International Shares is highly likely.
If this deal is reached, it will be good news for the Shanghai Stock Exchange. The company has more than 60 years of history, and although it is a technological leader in China's internal combustion engine industry, it has a strong overall engine R&D capability. However, because it is too lonely on the industry chain and cannot form linkages with downstream industries, the market is becoming smaller and smaller. The previous leading products of Shanghai Diesel Engine Co., Ltd. mainly focused on supporting construction machinery and other products. Due to the lack of support from vehicle manufacturers, Shanghai Diesel has not shown significant improvement in the automotive product supporting industry. The entry of SAIC Motor provides new development space for Shanghai Diesel Engine.
But as a controlling shareholder, Shanghai Automotive aims not only in equity investment (in the first three quarters of this year, Shanghai Automotive's equity investment income was 4.9 billion yuan, which is second only to China Life and Ping An in the A-share market), and its shares are in the short term. It can't be easily transferred, so it's ultimately for long-term goals.
Shanghai Automotive also announced in the announcement that the acquisition of Shangchai shares is an important measure for the company to develop its commercial vehicle business. After the completion of the acquisition, Shanghai Automotive will have its own brand of engine, complementary to the company’s existing products, to meet the overall development needs of commercial vehicle business, and will help build a core component system for commercial vehicles. At the same time, this acquisition is also beneficial to the development of the company’s own-brand commercial vehicle business; it is conducive to the rapid development of engine research and development capabilities, and integrates Shangchai’s existing comprehensive sales service system, parts manufacturing system and supplier network into the company’s own brand. The commercial vehicle service system enhances the company’s competitiveness in the commercial vehicle sector.
Increased sales and sales of commercial vehicles by 100,000 vehicles
Shanghai Automotive, which has already become one of the largest auto groups in the country, has become the largest passenger car in the field of passenger cars (having Shanghai GM, Shanghai Volkswagen, and SAIC-GM-Wuling). However, FAW and Dongfeng are veteran. In contrast, the lack of powerful commercial vehicles has always been a pain in SAIC's heart.
In fact, the growth rate of commercial vehicle market last year was not slower than that of passenger vehicles. According to statistics from the China Association of Automobile Manufacturers, in the first 11 months of last year, commercial vehicles produced 2,308,800 vehicles and 2,298,100 vehicles, an increase of 23.83% and 24.12% year-on-year, which was faster than passenger cars.
The attempt to compile Shangchai shares is only an episode in the development of commercial vehicles by Shanghai Automotive. Since last year, Shanghai Automotive has accelerated the pace of developing commercial vehicles to achieve the same situation as passenger cars and commercial vehicles.
The field of micro commercial vehicles is the only area in which SAIC Motor is currently gratified. Its SAIC-GM-Wuling auto sales will exceed 500,000 vehicles in 2007. It has been the leader in the field of mini vehicles for two years in a row; SAIC Motor has basically been in the field of light commercial vehicles. It was a vacancy, but after acquiring SAIC, SAIC had Nanjing Iveco in the field of high-end light vehicles, and Nanjing Iveco's sales to young passengers would reach 25,000, surpassing Transit to become the leader of domestic high-end light passengers, and in addition, Nanjing. Iveco also has a Yuejin light truck with an annual sales of 40,000 units. In the heavy truck market with the most promising market, SAIC has a Huizhong, but the tiny sales of Huizhong are far from SAIC's ambitions. On June 15 last year, SAIC Iveco After the official listing of Hongyan, the company immediately sailed into the fast lane. Last year, sales exceeded 24,000 vehicles, an increase of 70% year-on-year.
In this way, only through the acquisitions and mergers last year, Shanghai Automotive’s newly increased total production and sales volume of commercial vehicles was close to 100,000, which was equivalent to recreating a top-five commercial vehicle company in the industry. Shanghai Automotive’s commercial vehicle layout has greatly expanded. Some analysts believe that with the strong capital and management capabilities of Shanghai Automotive, Shanghai Automotive can compete with FAW and Dongfeng in the commercial vehicle sector.
View related topics: SAIC commercial vehicle expansion
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