Recently, the Hong Kong listed company Shandong International Trust Co., Ltd. (hereinafter referred to as Shandong Guoxin) announced that it plans to sell its 16.675% equity of Wells Fargo fund and all creditor’s rights under a collective fund trust plan through Shandong financial assets trading center.
The announcement also said that the initial listing price of Wells Fargo fund’s equity and the creditor’s rights is set according to the evaluation value. After the listing announcement period, the qualified purchaser who provides the most effective quotation is the transferee. However, the reporter has not seen the relevant listing information in Shandong financial assets trading center.
Shandong Guoxin said that these potential sales will help to improve the company’s asset liability structure and further optimize the company’s financial indicators.
According to the information of qixinbao, Wells Fargo fund currently has four shareholders, namely Haitong Securities Company Limited(600837) , Bank of Montreal, Canada, Shenwan Hongyuan Group Co.Ltd(000166) securities and Shandong Guoxin. The shareholding ratio of the top three is 27.775%, and that of Shandong Guoxin is only 16.675%.
In other words, if the final listing transfer is completed, Shandong Guoxin is equivalent to clearing all the equity of Wells Fargo fund.
According to the Haitong Securities Company Limited(600837) 2021 annual report, by the end of 2021, the total asset management scale of Wells Fargo fund exceeded 1.3 trillion yuan, a record high. Among them, the management scale of public funds is 889.7 billion yuan.
In terms of financial data, as of December 31, 2021, the total assets of Wells Fargo fund were 12.646 billion yuan and the net assets were 7.049 billion yuan; Revenue data also shows that in 2021, Wells Fargo fund achieved an operating revenue of 8.306 billion yuan and a net profit of 2.564 billion yuan.
If the net asset amount is estimated in proportion, the corresponding asset value of the 16.675% equity held by Shandong Guoxin is about 1.2 billion yuan. Considering the super trillion management scale and good profitability of Wells Fargo fund, the final evaluation price and transaction price may have a significant premium.
From the perspective of the other three shareholders, if they intend to take over, no matter who wins this part of the equity, they will become the largest shareholder, but they will face the requirement of “one participation and one control” at the same time, because no matter Haitong Securities Company Limited(600837) or Shenwan Hongyuan Group Co.Ltd(000166) securities, they all have their own fund companies.
It is worth mentioning that if the transaction is a one-time transfer, due to the change of shareholders holding more than 5%, further regulatory approval may be required in the end.
In addition, Shandong Guoxin also warned in the announcement that since the potential sale is only in the stage of considering public listing, the potential sale may not be carried out. The shareholders and interested investors of the company should be cautious when buying and selling the company’s securities. Reporters will also continue to pay attention to the listing.
