Candlestick chart features, data on capital flow, announcements, stock calendar, and core themes. Latest price: 5.06, change: 0.03, percentage change: 0.60%, trading volume: 1.09 million contracts, transaction amount: 551 million, turnover rate: 0.48%, price-to-earnings ratio: 108.35, total market capitalization: 115.4 billion. Check the stock quotes? Real-time capital flow? In-depth data? Enter China Heavy Industry forum?
China Heavy Industry related stocks: Asia Anchor Chain (8.2, 3.54%), Yaguang Science and Technology (7.5, 2.74%), China Power (23.56, 2.66%), China Shipbuilding Defense (25.82, 1.25%). Related sectors: Aircraft carrier concept (2.65%), Wind energy (2.28%), State-owned enterprise reform (2.10%), Expected profit increase (2.09%).
However, at the close on September 2 (before suspension), the share price ratio of the two companies was 7.008. After the resumption of trading, if investors of China Shipbuilding Industry Company want to maintain the original position ratio, the best approach is to sell their China Shipbuilding Industry Company stocks first and then buy China State Shipbuilding Corporation Limited stocks, that is, exchanging 7.
008 shares for one share of China State Shipbuilding Corporation Limited stock. But if all investors operate in this way, it will lead to a decline in the share price of China Shipbuilding Industry Company. After a day of market game, as of the close on September 19, the share price ratio of the two companies was 7.4198, which is very close to the share exchange ratio. To protect the rights and interests of small and medium investors, the reorganization of ‘North and South Ships’ also sets up a cash option, that is, dissenting shareholders can choose to give up shares and exchange for cash to leave. The cash option prices of the two companies are respectively 20% off the average price of the above 120 trading days, that is, 30.27 yuan/share for China State Shipbuilding Corporation Limited and 4.04 yuan/share for China Shipbuilding Industry Company. It is necessary for the cash option pricing to be lower than the market price, because only shareholders who vote against the merger plan can be regarded as ‘dissenting shareholders’. If the cash option pricing is higher than the market price, small and medium shareholders will all choose to vote against. In the case where the controlling shareholder abstains from voting as an affiliated party, the reorganization plan is likely to be rejected. It is worth noting that on September 2, the share prices of ‘North and South Ships’ both fell sharply. The decline of China State Shipbuilding Corporation Limited was even more than 9%. On the third trading day before suspension, there was a block trade of 774,300 shares of China State Shipbuilding Corporation Limited, with a transaction price of 35.44 yuan/share, a discount of 8.57% compared with the closing price of that day. The last similar transaction dates back to the end of 2020. Due to the large scale of this reorganization and the long process involving state-owned capital and the difficulty in information confidentiality, China Shipbuilding Industry Company warns in the announcement that it cannot rule out the possibility of insider trading by relevant institutions and individuals. Therefore, this transaction is at risk of being suspended, interrupted or cancelled due to abnormal fluctuations in stock prices or abnormal trading that may be suspected of insider trading. Overall, the merger of ‘North and South Ships’ does not bring too many surprises from the capital level. Its core logic still lies in the industrial level, and its actual value will take a long time to appear. Whether the reorganization can succeed still requires the high cooperation of the capital market, including the consent of small and medium shareholders of both sides in voting, no insider information leakage, and the cash option can effectively support the stock price. In this regard, investors should pay close attention. Related reports: The merger plan of ‘North and South Ships’ is ‘launched’. What ‘twists and turns’ lie ahead? Share exchange or cash out? On the first day of resumption of trading of ‘China God Ship’, the stock price is flat. Dissenting shareholders can leave at a 20% discount off the share exchange price.