The establishment of industrial M & A fund by listed companies is becoming a popular way of investment and financing. Statistics show that as of March 10, a total of 81 listed companies set up industrial M & a funds during the year, and more than 60% of the company’s investment fields are aimed at semiconductors and new energy tracks.
On February 9, Shenzhen Hongfuhan Technology Co.Ltd(301086) announced that in order to better carry out the layout of industries related to the company’s main business, it will participate in the investment fund initiated and established by Shenzhen Huixin Equity Investment Management Co., Ltd. with its own funds to invest in RF microwave chips and high-frequency analog chips. The initial scale of the partnership is 28.621 million yuan, and Shenzhen Hongfuhan Technology Co.Ltd(301086) subscribed 10.6 million yuan, accounting for about 37% of the total subscribed capital of the partnership.
On March 8, Gcl System Integration Technology Co.Ltd(002506) announced that in order to make better use of the advantages of the capital market and the investment management ability of professional investment institutions, build an industrial investment integration platform, increase investment in the photovoltaic industry chain, and better boost the development of the company’s main photovoltaic industry, an industrial M & A fund with a total subscribed capital of 1 billion yuan was established. The company plans to subscribe 100 million yuan with self raised funds, accounting for 10% of the total subscribed amount of the partnership.
“There are generally two ways for listed companies to set up industrial M & a funds: one is to use listed companies or actual controllers as the main investors; the other is to use listed companies or actual controllers to set up private fund managers and raise most of the total capital contributions from qualified investors. In short, it is the ‘listed companies + PE’ model.” Qin Ruohan, general manager of Jinhua fund, told the reporter of Securities Daily.
“Listed companies should choose good partners. Foundations established by government funds or industry leaders are more reliable, but they also have more requirements. For some private small and medium-sized private equity funds, listed companies should pay attention to two points: one is the source of funds; the other is whether the funds can be in place on time. The situation this year is relatively ideal.” China Merchants Securities Co.Ltd(600999) a sponsor representative disclosed to reporters.
In February this year, four leading companies in the lithium battery industry chain Yunnan Yuntianhua Co.Ltd(600096) , Yunnan Energy New Material Co.Ltd(002812) , Eve Energy Co.Ltd(300014) , and Huayou holdings jointly built a 100 billion yuan new energy battery industry chain cluster in Yuxi City. The total committed investment in phase I and phase II of the project was 51.7 billion yuan, which attracted great attention from the capital market. In addition, many listed companies have made cross-border investments in new energy or semiconductor and other new technology fields.
“Industrial M & a funds generally establish M & a funds through the joint establishment of several enterprises. These cooperative enterprises often have the same interest demands, such as increasing the number of suppliers, improving supply stability, extending to the upstream of the industrial chain, etc.” Pan Helin, executive director of the Digital Economy Research Institute of Central South University of economics and law, said that compared with refinancing, industrial M & a funds focus on long-term investment.
“Listed companies set up industrial M & a funds mainly because of the large financing demand of listed companies. They need to rely on the power of PE and complete the integration of the upstream and downstream of the industrial chain through industrial capital operation. It is an alternative way of refinancing.” The above sponsor representative said.
Qin Ruohan believes that “both semiconductor and new energy industry chains have the characteristics of long track and huge market, and they are industries strongly supported by the state. The establishment of M & a funds by Listed Companies in these fields is of positive significance to revitalize stock funds, leverage social capital, find future M & A targets and new growth flywheels.”
