, gold partner, Stone Group Holdings, Zhongguancun ... ... after a few words, there is a common legend - "Zhongguancun village" section of Wing Kei. Yesterday, the section of Wing Kei Stone led Holdings announced that its majority shareholder Beijing Stone Investment to be about 553 million Hong Kong dollar to the cost of the privatization of four holding, and to withdraw its listing.

PCCW privatization issue has just been snubbed, garment manufacturing and sale of business of the Crocodile privatization proposal, but have not been sufficient to shareholders in favor of failure. "Section village" privatization can succeed?

the privatization of large shareholders

Stone Holdings (00409, HK) announced a few days ago, by the major shareholder of Beijing Stone Investment launched, the company intends to move recommendations, in accordance with "the Companies Ordinance" in section 166 agreement will be arrangements in the privatization of the Company.

According to the announcement revealed that the major shareholder of Beijing Stone Investment recommendations to the Hong Kong dollar 0.48 per share price before the suspension than the premium of 39.13 percent to HK 0.345, will be holding four privatization, it is estimated that the privatization required to complete the maximum amount of about 553 million Hong Kong dollar. In addition, share options under the offer, for the write-off, the company will not offer to exercise the options, each has not been the exercise of share options in exchange for cash to 0.001 Hong Kong dollars, the agreement enters into force arrangements, Stone Group Holdings listed on the SEHK status will be removed.

stock resume trading in昨早, closed at 0.43 Hong Kong dollar, or 24.64%.

"Daily Economic News" recently held at Stone, was informed of all matters to Notice shall prevail.

reasons privatization

Stone Holdings privatization of small and medium-sized shareholders really advantageous position?

Stone holding 205 million medium-term loss of performance

Stone Holdings currently has three major lines of business, namely the Mainland-based electronics and IT network services business, health care products business and investment business . Stone Holdings reports its interim results have shown that, as of September 30, 2008 for 6 months, recorded a performance loss of about 205 million Hong Kong dollars, the same period last year net profit of 318 million Hong Kong dollar was a significant regression.

industry believes that the privatization of general meeting of shareholders to vote on the motion, holding four of its poor performance may be a good beginning, investors voted in favor of the votes in favor of privatization.

but its unaudited turnover of 1.34 billion Hong Kong dollars, the same period last year rose 9.1 percent, compared with gross margin increased 50.7 percent year-on-year to 495 million Hong Kong dollars, turnover and gross profit during the period once again become the Group's Since the semi-annual listing of a new high. Stone Holding's turnover and gross profits are rising, why would a loss do?

Stone Group Holdings said that its interim results back in the major investment involved dream-day tour of the Cayman company, has more than two consecutive years of losses, as well as the huge global financial impact of the tsunami. Four of them holding the business, by reason to stop selling some products, the electronic network from the same period last year turnover of 747 million Hong Kong dollar fell to 7.21 Hong Kong dollars, and health care products business turnover, due to strong advertising and marketing, an increase of 28.7 percent, to 618 million Hong Kong dollars, the Hong Kong dollar 423 million to create Maori the same period last year soared 59%.

privatization of small and medium-sized shareholders benefit?

Holdings Stone said in the notice, the privatization proposal to the independent shareholders have the opportunity to fluctuations in the current market conditions, will hold the shares, a premium form of cash, at the same time allow the independent shareholders of the the current market downturn, have the opportunity to be immediate, according to the wishes of the flexibility to re-invest in other business opportunities.

In addition, Stone pointed out that the holding will be bank loans, loans and management resources to meet the requirements of their own cash, its financial adviser, Macquarie Capital (Hong Kong) believe that the company has sufficient financial resources to implement the recommendations.

industry was of the opinion: If because of its poor performance, Stone Holdings shareholders agreed to the privatization, but after the privatization of health care products business due to the strong performance, holding the performance of four face a sudden, the scene of a repeat of Greentown China , and that investors will regret it later.

extended reading

Stone Holdings privatization can succeed?

some analysts pointed out that the impact of the financial tsunami, the low valuation of the Hong Kong stock market, privatization is more frequent and normal phenomenon.

member of the first strategy叶尚志Shanghai stock market to the "Daily Economic News" said that the privatization of the recent events are more frequent, more of a theme. Most Hong Kong stocks in the financial tsunami attack in particular, the Hang Seng Index more than two months later, facing a re-valuation process, in the current market conditions for the better cases, the privatization of these companies need to be a larger premium to a greater extent to avoid opposition from small and medium-sized shareholders, while叶尚志that the tide of privatization does not necessarily mean the arrival of the bull market of Hong Kong equities.

In fact, this year has been the privatization of a number of listed companies, and ended in failure.

which, in November last year, PCCW (00008, HK) the major shareholder of Pacific Century's wholly-owned subsidiary of China Netcom Group StarvestLimited and wholly-owned NetcomBVI, raised 150 billion will be electric the privatization of profit, but the price was low external challenge, followed by a joint offer for PCCW to the proposed cancellation will increase 7.14 percent, with a total write-off costs of about 15.934 billion Hong Kong dollar. In February 2009, on suspicion of corrupt privatization of PCCW, the Hong Kong Securities and Futures Commission has been allowed to intervene in the proceedings PCCW privatization, April 22, the Hong Kong Court of Appeal overturned a previous court formally approved the privatization of PCCW Limited's decision , PCCW announced later declaring a special dividend, but its shares against the market trend is still down, in May, its stock price has plummeted more than 35%, both large and small shareholders is a lose-lose.

In addition, the business of garment manufacturing and sale of Crocodile Garments (00122, HK), its mid-February this year put forward a privatization proposal, but in the recently held Extraordinary General Meeting to vote on the motion on the privatization, the private of the motion has not been through enough in favor of shareholders, but ended in failure.

"Zhongguancun village" of the section of Wing Kei privatization can succeed?

background information

"Zhongguancun village" section of Wing Kei

called "in the customs head of "the section of Wing Kei, Zhongguancun has long been regarded as a legendary person.

section of Wing Kei graduated from Tsinghua University in 1970 after the formal accession in 1985 the four companies, four companies take full control, so that four of the basic realization of the group, internationalization, industrialization and demutualization. In 1993, the section of Wing Kei restructuring announcement came after four electronic, electronics, led by the success of four listed on the Stock Exchange in Hong Kong and Hong Kong became the first mainland state-owned economy of non-listed holding company. December 15, 2003, a section of Wing Kei Hong Kong dollar 1.17 billion acquisition of the Shanghai Gold partner史玉柱Biological Technology Co., Ltd. 75% of the equity, as well as the whole management team. Under the agreement, Stone Electronic payments will be 600 million Hong Kong dollars, the equivalent of 570 million Hong Kong dollar, as well as 5-year convertible notes with史玉柱transactions will史玉柱Melatonin's Gold partner and other products with intellectual property rights , as well as sales of these products and other major assets of the network after all packaged into the deal.史玉柱also that in two years after the completion of the acquisition, the company's annual net profit of not less than 170 million Hong Kong dollar. At the same time, Stone Electronic announced Holdings changed its name to Stone, the official health care products industry to step onto the path of transition.

success in the section of Wing Kei Melatonin and gold to buy the health care team "双枪" after the health care market in China has come out on top, and "Melatonin" and "gold partner" products, but also once in a National Health forefront of health care products sales list, including "Melatonin" is health care products has won the national championship, as well as sales of the most influential brand.