The universe first property country Garden service reneged on its promise and increased the acquisition within half a year

2022-06-17 0 By

In the past year of 2021, Country Garden Has acquired Blu-ray Garbo Services, R&F Properties and Neighborhood Music Holdings for nearly 5 billion yuan, 10 billion yuan and 3.3 billion yuan respectively.After the acquisition, Country Garden Service continued to issue shares and convertible bonds to obtain cheap funds in the capital market.(Xie Hongjuan editor/Yo-Yo Ma) Country Garden services, which claimed not to merge within half a year, is rushing to merge with Zhongliang Baiyue Zhijia services.On the evening of February 14, Country Garden Services issued a voluntary announcement regarding the acquisition of Zhongliang Baiyue Zhijia Services Co., LTD.Announcement, on February 11, 2022, country garden services indirect wholly-owned subsidiary of country garden property holdings co., LTD. Hong Kong and international co., LTD., and Chen chong zhuo international co., LTD., gen yuan international co., LTD., heng sheng co., LTD., and the tzu chi international co., LTD., and with the international co., LTD., jackyang, Li Jiacheng and Ma Fei binding share purchase agreement,About country Garden Properties Hong Kong’s acquisition of about 93.76% equity stake in Zhongliang Parkview Services.At the same time, the completion of the acquisition and the payment of the price are subject to a number of provisions under these agreements, including further due diligence, and the final price is subject to adjustment within the price ceiling in accordance with the terms of these agreements and the results of further due diligence.In other words, the two sides have only agreed on the asset transaction, but as of now, the acquisition has not been completed.In the area of management is expected to exceed 1 billion ping Country Garden service and Zhongliang Baiyue Zhijia service cooperation has been boding well.Data show that Zhongliang Baiyue Zhijia Service is a rapidly developing property management service provider in China. Its parent company, Zhongliang Real Estate, is known as “Little Country Garden” in the industry, which is reflected in the appointment of country Garden senior executives, imitating Country Garden to take a piece of land every three days, and comprehensively learning the “456” high turnover model of Country Garden.For this reason, The development routes of Zhongliang Baiyue Zhijia Service and Country Garden service are very similar. In order to further close the distance with the idol, Zhongliang Baiyue Zhijia Service introduced the investor Country Garden Service, which holds 6.24% of the shares of the former.After two attempts at an IPO, the HKEX approved the IPO hearing of Zhongliang Baiyuet On December 23, 2021.It is worth mentioning that industry insiders told the observer network that Liang Baiyue Zhijia went to The Hong Kong listing is actually for the real estate plate.However, affected by the overall market environment, in 2021, 10 of the 13 newly listed property management stocks are broken.That is to say, for Liang Baiyue Zhijia, listed financing is no longer a good way out.Zhongnan service, in the same situation, chose to sell himself to China Resources Vientiane Life after the hearing was approved.Imitating the way of zhongnan service, Zhongliang Baiyue Zhijia decided to sell their services to their idol country Garden.According to the prospectus, as of June 30, 2021, Zhongliang Baiyue Zhijia has 291 projects under management and 508 contracted projects under management, with a total construction area of about 33.2 million square meters and a total contracted construction area of about 71.2 million square meters, covering 154 cities in 18 provinces, two municipalities and three autonomous regions in China.After the acquisition, Country Garden’s service area under management is expected to exceed 1 billion square meters.Specific terms, by 2021 semi-annual, country garden a total area of about 644 million square meters, the total service charge management blu-ray gerber fuli property services, and neighborhood after combined in the tube area over 280 million square meters, including the acquisition centre sill hundred yue think better area of 33.2 million square meters in the tube, a combined in the tube area of about 957 million square meters.”The acquisition will complement the group’s business and help the group strengthen its brand influence in high-end residential property management and expand the potential of community value-added services,” said Country Garden Services.Moreover, projects of the Group and Zhongliang Baiyue Zhijia have a high degree of overlap in business areas, which is conducive to integrating the advantages of both sides in the future, reducing operating costs and improving profitability.In addition, Country Garden services said that the acquisition will further enhance the group’s influence and competitiveness in the market, contribute to the long-term stable development of the Group and achieve better returns for the company’s shareholders.In fact, Country Garden Service has publicly promised not to merge or issue additional shares within half a year.On December 14, 2021, Country Garden Service issued a commitment by the Company and the Chairman of the Board and controlling shareholder of the Company, stating that there will be no significant asset sale or acquisition of the Company, no rights offering in the open market and no personal sale of company shares by Yang Huiyan, chairman of the Board, within six months from the announcement.Among them, six months from the date the announcement, country garden services and their associated person of the subsidiary company and the company country garden group, are not expected to happen to price more than RMB 200 million (whether individual or combined) major asset sale or acquisition, but has been approved by the board of directors and ╱ or the company shareholders of continuous link trading is still as usual.At that time, the acquisition of Zhongliang Baiyue Zhijia Services by Country Garden Services was not approved by the board of directors, and according to industry estimates, the transaction consideration was clearly over 200 million yuan.That is to say, less than 2 months of commitment, country Garden service will hit their face.More importantly, the announcement was prompted by a desire to prevent the company’s share price from falling further.Guancha.cn learned that the share price of Country Garden Service declined for three consecutive days from December 10 until it reached its peak on December 14 with a drop of 10.17%. On that day, Country Garden service opened at HK $51.05 and closed at HK $47.25, losing HK $18 billion in one day.In addition to market factors, the frequent acquisition and frequent financing of Country Garden services will undoubtedly step on the most fragile nerves of investors.Guanxi has learned that country Garden, as the first share of the property, acquired Blu-ray Garbo Service, R&F Property and Neighborhood Music Holdings in 2021, with consideration of nearly 5 billion yuan, 10 billion yuan and 3.3 billion yuan respectively.After the acquisition, Country Garden Service continued to issue shares and convertible bonds to obtain cheap funds in the capital market.In October 2020, less than two months after it acquired 60% of Fujian Dongfei for 375 million yuan and 70% of Manguo Kangjie for 2.45 billion yuan, Country Garden Entered into a placing agreement with its placing agent to place 173 million shares at HK $45.00 per share, raising HK $7.785 billion.It is worth noting that country Garden property closed at HK $49.70 per share one business day before the release of the placing agreement, at a discount of about 9.46% to the placing price.Following the same path, Country Garden acquired Garbo Service and R&F Property at a discount of 9.5%.Data show that in May 2021, Country Garden Service plans to issue 139 million shares at HK $75.25 per share price, raising a total of HK $10.4 billion.In November 2021, Country Garden Services plans to place a total of 150 million shares at HK $53.35 per share, raising about HK $8.03 billion.So far, Country Garden Service has raised more than 26 billion yuan through rights offering, including more than 8 billion yuan through convertible bond financing, higher than the sum of its three major mergers and acquisitions.”But frequent dilution of shares to achieve the purpose of financing, on the one hand, is not sufficient capital in hand, on the other hand is not conducive to boosting investor confidence.”The person inside course of study bluntly.Because of this, Country Garden Service has made a commitment, no mergers and acquisitions, no rights issues.Unexpectedly, when the industry giant, Country Garden services m&a addiction, but also in the commitment period will continue to buy buy buy.This article is an exclusive article, shall not be reproduced without authorization.