At the end of September, 2003, the world 500 strong, one of its largest battery manufacturer duracell battery company of American Gillette Gillette company (Hong Kong), whole purchase all the shares of China battery Co., LTD, which indirectly held by China, nanping, fujian NaFu batteries battery Co., LTD, has become NaFu 72% battery indirect controlling shareholders. In China, encourage foreign investment in China by means of cross-border mergers and acquisitions, under the situation of the battery of transnational m&a NaFu from the curtain.

As China’s first one, the world’s fifth-biggest alkaline batteries, NaFu battery “domestic market share is about 54% in some cities, such as Beijing, share reached 90%.

On the outside looking in, the acquisition of the battery are Chinese heritage of domestic battery, explosive events will have profound influence on the market. But in fact, Gillette m&a news has been NaFu blockade.

NaFu officials reaction unexpectedly low-key and calm: “this is very unusual thing, now, there is not much influence on company.” The details of the disclosure is extremely cautious.

But gillett aspects of conservative also unexpectedly. NaFu battery domestic big shareholders of the company senior personage nanping — for the new finance and economics “, told reporters after the news media, expose American gillett has specialized in response, please hold meetings nanping city NaFu requirement and relevant shareholders shall not be revealed to the media information. The statement from NaFu concerned personage, Gillette NaFu m&a in short-term domestic battery industry would cause fast-changing, but difficult to judge NaFu itself has caused the shock wave can avoid. The new financial reporter learned from NaFu business department, because the company precarious speculation, and consumers by the complex NaFu domestic brand competitors use, the merger of news NaFu gillett has made NaFu battery sales link under certain pressure.

JingTun type m&a

American Gillette company is the world’s largest producer of the battery, the razor and NaFu big shareholders Hong Kong China battery Co., LTD. All the shares shall be of Morgan Stanley, including the Singapore government investment, sunshine investment company shareholders, etc. Through the transfer of shares held by shareholders Chinese batteries, not from China’s battery hand directly purchase its NaFu battery, American Gillette retained the Hong Kong Chinese enterprises registered the battery company resources, apparently to outthink, also avoid direct NaFu equity transfer may exist some laws and policies. The media disclosed, NaFu domestic shareholders of the acquisition cost estimate Gillette about 1 million dollars. But within a master NaFu details of the new finance director told the reporter, “this speculation data with actual situation in NaFu. Because of the asset valuation of the situation, belongs to the trade secrets, equity transfer transaction price now, even NaFu need secret of other parties to domestic shareholders have no knowledge.” According to the analysis of asset valuation case, because of the secret, do not eliminate Gillette company have any purchase NaFu other shareholders may all of wing lung’s shares.

According to relevant data, in September 2002 NaFu about seven million yuan of fixed assets, and NaFu officials told the reporter that new finance company currently total assets at 8 million, fixed assets changed since 2002, the asset-liability ratio in 30%. Accordingly, the scale that NaFu net roughly about 560 million yuan, China shares held by the battery 72% for shareholders’ equity 4.032 billion yuan, according to the exchange rate or 8.26 4881.36 million dollars. According to the calculation, the Gillette buying Chinese stock prices should all batteries in 4881.36 about $basis, in certain premium or discount (range) of NaFu assets value, the assessment will influence the premium or discount) (.

Besides the equity transaction price is attractive, companies such as Morgan Stanley guess why from NaFu retreats also concern. According to insiders revealed, NaFu originally several foreign investors are no long-term investment plan, they said, most investment 8 years. Since 1999, they expected investment still remain in half.

According to Morgan Stanley, Asian shares of companies in China ping an insurance company, including NaFu batteries, heng an international well-known companies, etc. The msci Asia investment limited company executive director Paul hill said, Morgan Stanley in China at present the basic standard is, by investment company has a well-known brand and has begun to profitability. Obviously, the investment of NaFu meets the standard. Another analyst pointed out, the msci Asia company summarized selection criteria for merger and acquisition of domestic enterprises have four: the traditional industry, leading position, famous brand and continuous profitability. From 1999 until now, NaFu NaFu shareholders and indirect shareholder has considerable value, timely optimum price may not withdraw a good choice.

In fact, China’s major shareholders the battery company stock transfer to real strategic investors, and actively looking for buyer’s move comes in early 2003. Except for the U.S. Gillette company, the world’s second-biggest battery manufacturer American energizer holdings group and the United States, the jiawei company have been included within the scope of object.
will hold the NaFu 72% of shares.