Zhang bridge the limitations of capital operation

 Recently, an entrepreneur asked me if I have no way to control two of his Hong Kong listed companies unrelated to string together, that is, controlled by the one of another. In a free capital market such as Hong Kong, this is easier thing. a few months to complete. as long as a company in which he sold the shares to another company. payment of the consideration can be cash, stock or convertible bonds. related transactions of the matter as long as the small shareholders and Hong Kong approved by the SFC on the line.
I asked in detail about his intentions. Originally, he wanted to year to issue new shares and diluted to 32%. If he wants to continue holding, then again not much room for dilution. So, someone told him to put the company moves to smaller firms. Of course, this result is that he in that the future, the two companies can have their own focus, and employers can continue to maintain control of both companies.
the same token, many companies have several business segments (although the total may not be large scale ), like to split them into several listed companies. It would have been no bad thing. The problem is that they break the right way. In order to granddaughter of the company size of the shareholders have for this parent Think, if investors can always buy the house of your real companies (female company) stock, why would he buy you around the bends of the . This discount is called . in fact amount of the financing is limited. clever way is opposite to the layers of process known as like a lot of family businesses in Europe to build the parent and grandmother, the company lost its financing function largely because stock prices lower than the replacement cost of perennial, or less than the net assets or below the shareholding structure of the clear, no burden on the business philosophy of the company) behind. U.S. companies are mostly of new breed of companies. In recent years, Chinese enterprises in the Digital China and so on. we can refer to.
capital operation, there are many technical details, but are insignificant skills. lawyers, accountants and investment bankers will do, but the real difficulty lies in the wisdom and the business continued to do business. I for many years to observe that many entrepreneurs to turn their precious time in people feel really very important division of labor.
some entrepreneurs over-emphasis on capital operations, including investor relations (ie, propaganda), is no more than the ultimate determinant of stock prices or profits, in particular cash flow. they do in the secondary spend a lot of time, delay the fundamentals, he still kept in the dark. (This article is purely personal point of view, does not mean that the author's employer)
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