There was another big merger in the property circle.
Zhongliang Baiyue Zhijia, who successively failed to impact the IPO, turned into a “small country garden service”.
On February 12, some media revealed that Zhongliang Baiyue Zhijia, a property enterprise that is impacting the IPO, had recently been fully acquired by country garden services. Zhongliang confirmed the news to the reporter of daily economic news. As for the price, it still needs to wait for a formal announcement.
Since Zhongliang Baiyue Zhijia passed the hearing in December 2021, it has not promoted the IPO, and the possibility of being acquired has always existed. However, if it is listed separately, the premium obtained by the enterprise may face high uncertainty, so it is a better choice to cash at the moment.
two degree impact IPO
Zhongliang Baiyue Zhijia has impacted the IPO twice, the first time on April 29, 2021, and the prospectus expired half a year later; In November, Zhongliang Baiyue Zhijia submitted the prospectus for the second time.
According to the prospectus, most of Zhongliang Baiyue Zhijia’s businesses are located in the Yangtze River Delta. As of June 30, 2021, there were 291 projects under management and 508 contracted management projects, with a total construction area of about 33.2 million square meters under management and a total construction area of about 71.2 million square meters under contract, covering 154 cities in 18 provinces, two municipalities directly under the central government and three autonomous regions of China.
At that time, for Zhongliang Baiyue Zhijia, if it can be listed successfully, it can not only provide financial support for the parent company Zhongliang holdings, but also continue to do large-scale through the support of the capital market, which can be called “killing two birds with one stone”.
According to Yu Xiaoyu, research director of Yihan think tank, it is not surprising that Zhongliang Baiyue Zhijia “married” country garden service. He told reporters that the relationship between Zhongliang and country garden has always been relatively close. As the war investment of Zhongliang Baiyue Zhijia, country garden has high similarity in management mode, project positioning and expansion mechanism. If a transaction can be reached, it will greatly improve the market density of country garden services in East China.
But the situation has changed. Informed sources told reporters that at the end of last year, Zhou Qinwei, the former president of Zhongliang Baiyue Zhijia, and most of the backbone of the whole listing group were optimized. At that time, Zhongliang Baiyue Zhijia had passed the hearing. According to the regulations of the Hong Kong stock exchange, generally speaking, the market recognized that it had failed to ring the bell within one month after the hearing.
With the departure of the listing team, Zhongliang Baiyue Zhijia began to get the news of contact with property giants such as China Resources Vientiane life and country garden service.
Zhongliang insiders revealed that after the start of the new year, rumors that Zhongliang Baiyue Zhijia will be acquired have become rampant, and a certain consensus has been reached internally.
About the acquisition, the reporter of the daily economic news called Li Jiacheng, executive director of Zhongliang Baiyue Zhijia, and the phone was never connected.
big fish eat small fish
Since the end of last year, with the decline of market enthusiasm, the high valuation of property enterprises has dropped. For small and medium-sized property enterprises such as Zhongliang Baiyue Zhijia, it seems that it is not the best choice to choose to be listed in this segment.
At this stage, the listing of properties is no longer a tuyere and pastry. Even after the hearing, the pace of listing may be stopped. Generally speaking, property companies have been transfused by the parent company. At this stage, in the context of the industry, if there is no blood transfusion from the parent company, the property company has become a “burden”.
Zhongliang told reporters that Zhongliang currently focuses on the main business of real estate development, so it is a self-help measure to abolish unimportant departments, sell assets and optimize personnel. With this money, at least Zhongliang can get through this stage smoothly.
58 Zhang Bo, President of anjuke Real Estate Research Institute branch, told reporters that in terms of the current market environment, the listing of property companies in Hong Kong may not be in the best period, mainly due to the sudden change of the real estate situation and the negative sentiment of the market also affected property enterprises. With the centralized listing of a large number of property enterprises, the scarcity of property stocks has decreased, and the preference of the capital market has been greatly reduced.
Yu Xiaoyu also told reporters that Zhongliang Baiyue Zhijia, as a representative of fast-growing material enterprises, has a medium-term reserve area of 38 million square meters in 2021, with high growth potential and certainty in the future; The net interest rate in the same period reached 15.9%, which is a good target for country garden services.
Since this year, mergers and acquisitions in the property industry have never stopped. There were four in January alone, all of which were 100% equity acquisitions.
Zhang Bo said that the transmission of real estate liquidity crisis is a direct inducement for the frequent occurrence of large M & A transactions in 2021; Secondly, expanding the scale and seeking development of enterprises are the endogenous driving force of M & a frenzy; Sufficient M & a funds are the supporting factor for the scale of M & A. Zhang Bo predicted that in the next few years, the way of expanding the scale through mergers and acquisitions will continue.
