In the highly market-oriented public fund industry, the company’s equity change has become a “new normal”. Recently, the CSRC gave feedback on the application for equity change of two Shanghai public funds.
Industry insiders believe that with the rapid development of the public fund industry, equity changes are generally due to the following reasons: first, implement the employee stock ownership plan to promote the stability of the fund company’s core talent team and form a mechanism for the long-term interests of shareholders, core employees and investors; The second is the strategic consideration of shareholders, either to increase the deployment of the company’s voice, or to find more suitable strategic partners.
The public offering fund license has become a “pastry”. More and more enterprises or institutions intend to hold the public offering license. The “base content” is regarded as the “gold content”. The equity change applications of Wanjia fund and Huabao fund are the latter.
As of February 13, more than 5% of the equity change applications of 16 fund companies, including Wanjia fund and Huabao fund, were waiting in line for approval. Among them, seven fund companies, including Guoshou security, TEDA Manulife, Hengyue, Xinghua, Zhongke fertile soil, Donghai and Guokai Taifu, are still waiting for the acceptance of the CSRC.
the valuation of 10000 funds exceeds 2.3 billion
On July 21, 2021, Xinjiang Xinjiang International Industry Co.Ltd(000159) announced that it planned to sell 40% equity of Wanjia fund held by Shandong new kinetic energy fund management Co., Ltd. (hereinafter referred to as “new kinetic energy fund company”), with a transaction price of 950 million yuan. Based on this price, the valuation of Wanjia fund at that time was 2.375 billion yuan.
At present, the equity structure of Wanjia fund is: Zhongtai Securities Co.Ltd(600918) holds 49%, Xinjiang Xinjiang International Industry Co.Ltd(000159) holds 40%, and Qihe Zhongxin Investment Co., Ltd. holds 11%. If the transaction is completed, Xinjiang Xinjiang International Industry Co.Ltd(000159) will no longer hold the equity of Wanjia fund. The application materials for equity change of Wanjia fund were received by the CSRC on September 8, 2021 and supplemented and corrected on September 15.
According to the feedback on February 11, the CSRC asked Wanjia fund to implement the following four questions one by one and provide written replies:
I. the loan cooperation agreement signed by both parties in the early stage of the equity transfer has not expired, and the relevant loans are pledged with 40% equity of Wanjia fund held by the equity transferor Xinjiang Xinjiang International Industry Co.Ltd(000159) . Please supplement the loan cooperation agreement, and explain and promise whether the expiration of the relevant agreement affects the equity transfer and whether the equity transferee has exercised shareholder rights in advance;
II. The evaluation report on the equity transfer is valid until December 30, 2021. The equity transferee, new kinetic energy fund, is requested to explain whether the expiration of the evaluation report affects the equity transfer;
III. please supplement and submit the proposal on equity transfer of the company at the first extraordinary shareholders’ meeting of Wanjia Fund Management Co., Ltd. in 2021;
IV. please supplement and submit the proposal on considering the company’s transfer of 40% equity of Wanjia fund held by Xinjiang International Industry Co.Ltd(000159) at the 15th meeting of the board of directors of new kinetic energy fund in 2021.
By the end of 2021, Wanjia Fund ranked 26th in the industry with a non commodity scale of 163.483 billion yuan, which is a high-quality target in the public fund industry.
well known foreign investors want to transfer part of the equity of Huabao fund
On February 11, the CSRC gave feedback on the application for equity change of Huabao fund.
Up to now, the company’s equity structure of Huabao fund is: Huabao trust holds 51% and Warburg Pincus asset management, L.P. (Huaping Investment Group) holds 49%. This equity transfer is the transfer of part of the equity of Huabao fund by Warburg Pincus investment group. However, the announcement did not disclose the transferee, share of equity transfer and transaction pricing.
According to public information, Warburg Pincus investment group is a well-known private equity investment institution in the world. At present, Warburg Pincus investment manages more than US $67 billion of assets worldwide and invests in more than 215 enterprises in different industries and different stages of development.
According to the feedback from the CSRC, Huaping investment group needs to make supplementary explanations on whether to consider taking shares in other domestic fund companies after the transfer of part of the equity of Huabao fund, as well as the investment strategy and purpose in the domestic public fund industry.
It is worth mentioning that the above announcement also mentioned that the audited financial report of the equity transferee showed that the net profit was continuously negative from 2019 to 2020 after deducting government subsidies. The CSRC asked the equity transferee to further demonstrate the reasons for continuous losses, the situation of reversing losses and whether it complies with the provisions of the measures for the administration of securities investment fund management companies that shareholders holding more than 5% equity of fund management companies should have “good asset quality”.
In response to the Chinese reporter of the securities firm, Huabao Fund said, “in the process of administrative examination and approval, the CSRC has accepted and put forward feedback. Other relevant information shall be subject to the company’s announcement.” By the end of 2021, Huabao Fund ranked 32nd in the industry with a non commodity scale of 133.326 billion yuan, at the upstream level of the industry.
