Ganzhou Chenguang Rare Earths proposed backdoor listing again

Prior to the August 27 evening, Xiamen listed companies Yinrun investment announcement, the proposed asset replacement and to issue shares through the purchase of the entire equity interest Chenguang Rare Earths, thereby transformed into rare earth smelting enterprises. This means that a high degree of capital market concerns regarding a new dawn rare backdoor "object."

According Yinrun investment announcements, preliminary estimates, the restructuring of assets to be set out the estimated value of about 206 million yuan, value-added rate of 27.16%; estimated value of the assets to be injected and up to about 1.311 billion yuan, value-added rate was 105.81%. For the difference between the estimated value of 1.105 billion yuan part Yinrun investment to Chenguang Rare Earths to purchase outstanding shares of all shareholders, issue price of 9.4 yuan / share, a total of about 118 million shares issued shares.

Run Investment Bank, formerly known as Xiamen Marine Fisheries Development Corporation, 1992 already listed. Listing, performance perennial appetite, renamed several times, in 2012 changed its name to Xiamen Yinrun Investment Corporation, when annual net profit was only 3.6886 million yuan. Run Investment Bank on March 20 this year, re-suspension, publish backdoor after the announcement, on the 28th restored traded on the 28th, the 29th consecutive daily limit, the current price of 11.62 yuan.

Old backdoor object issued notice to protest

Chenguang rare earth "cheating" behavior make them the old backdoor object S Shun Yuan very dissatisfied. 28 evening, S Shun Yuan issued notice illustrated with Chenguang Rare Earths dispute arbitration case, noting in particular S Shun Yuan has worked with major asset restructuring Chenguang Rare Earths signed a letter of intent, expressly agreed to the dawn of rare earth with any other third-party exclusivity clause of restructuring ; the current dispute in arbitration proceedings, the dawn of rare earth but also with another listed company to promote a major asset reorganization, contrary to the principles of market integrity, the company and investors have been adversely affected.

S Shun Yuan also written to the reorganization of intermediaries Haitong Securities, that its agreement with the company's services are still valid under the premise of the same asset restructuring of listed companies also provide services for the two listed companies, is the multi-agent behavior, serious violation of the securities industry, industry standards and practice discipline financial advisers to retain the right to take further legal action.

Last April 25, the company and major shareholders Shun Yuan Investment and Chenguang Rare Earths and its actual controller Huang Ping, signed a letter of intent significant asset restructuring, agreed to a major asset restructuring matters. However, 26 October 2012, the program was meeting's veto. Seeing backdoor blocked, this year on February 7, Chenguang Rare Earths and its actual controller Huang Ping issued a termination letter, declared a unilateral lifting of previously signed "letter of intent", and subsequently filed for arbitration, bringing the two sides in court. S Shun Yuan is considered a breach of contract is Chenguang Rare Earths, the Commission filed a counterclaim to the arbitration request to Chenguang Rare Earths continue to perform the contract and pay a penalty of 30 million yuan. Shanghai International Arbitration Centre in July this year, hearing the case, the results are not yet available. August 9 this year, Huang Ping Yuan and the letter S Shun Shun Yuan investment, tough stance known whether the outcome of this arbitration are no longer with the company a major asset restructuring cooperation.

Morning drop more than 60% of rare earth valuation

Last year Chenguang Rare Earths has tried backdoor S * ST Tianfa (ie S Shun Yuan) to April 30, 2012 as the Valuation Date, Ganzhou Chenguang assessed value of 3.34 billion yuan, and now more than a year, Chenguang Rare Earths valuation which fell more than 60%, currently only 1.311 billion yuan.

Why so violent valuation decline? This downturn in the past two years on the rare earth industry. According Yinrun investment announcement, the proposed injection of assets Chenguang Rare Earths 2011, 2012 unaudited net profit attributable to shareholders was 606,005,500 yuan and 81.1927 million yuan, totaling 687,198,200 yuan; profit after deducting non-recurring Net profit attributable to shareholders was 598,024,800 yuan and 81.9399 million yuan, totaling 679,964,700 yuan. Visible in 2012 net profit fell dawn earth was more than up. First half net profit of dawn earth 24 million yuan, is still falling in.

Since the valuation of serious decline, why did the morning rush rare backdoor listing? According to the reporter, the past two years, through a series of intense Chenguang Rare Earths and transfer of equity capital, once ready to pass through the IPO. January 12, 2012, the Commission decided to terminate the examination Supervision Department issued Gansu Rare Earth New Materials Co., Ltd. IPO application, so rare earth companies IPO overshadowed the road. IPO road to nowhere, before deciding backdoor listing Chenguang Rare Earths, and in the backdoor on the eve of the introduction of a number of intensive PE. Chenguang Rare Earths current shareholding structure shows that the company's actual controller remains Huang Ping, directly or indirectly holds more than 60%, Redstone venture, Baotou Steel Rare Earth, Qian Sheng venture capital, venture capital Honiton, Wei Tong and other companies to create wealth holdings.

Chenguang Rare Earth backdoor successful, is expected to become the first 34 plate A shares of listed companies in Jiangxi, Huang Ping, will also be more than 500 million yuan in Jiangxi new Regal.


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