Bottom line: Qihoo’s reorganization is part of its hurried bid to re-list in China to pay off backers of its privatization, while shareholders of Trina and Dangdang are likely to approve final management-led buyout offers for the 2 companies.
Qihoo rejigs in hopes of re-listing
The homeward migration of US-listed Chinese companies is in a trio of new headlines, showing that financiers are still willing to back de-listings for stronger companies. The largest of the headlines has security software specialist Qihoo 360 undergoing a major overhaul as it seeks to re-list in China, following its record-breaking privatization from New York last month. Meantime, solar panel maker Trina (NYSE: TSL) and e-commerce site Dangdang (NYSE: DANG) have also announced major advances in their own plans to privatize. Read Full Post…
The following press releases and news reports about China companies were carried on August 3. To view a full article or story, click on the link next to the headline.
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China Regulator Says Didi, Uber Deal Will Need Mofcom Approval (English article)
Sanyuan Foods Gives Up Preferential Rights to Buy Beijing McDonald’s (NYSE: MCD) JV (Chinese article)
Trina Solar (NYSE: TSL) Enters into Agreement for Going Private Transaction (PRNewswire)
Baidu (Nasdaq: BIDU), Tencent (HKEx: 700) May Cut Wanda E-Commerce Ties (Chinese article)
Cheetah Mobile (NYSE: CMCM) Buys Global News Aggregation App ‘News Republic‘ (English article)
Bottom line: Trina’s new loan and BYD’s uncertain outlook for EV sales this year reflect continued reliance of new energy technology companies on state support, which could pressure them as government incentives get retired.
Trina, BYD fueled by state support
Two new energy stories are in the headlines today, reflecting the progress but also the continued reliance on government support that this up-and-coming group of companies faces. That particular reality isn’t new, though some who were hoping the industries would become commercially independent more quickly may be disappointed. But more important, this reality could challenge many of the companies in the next 2-3 years in the face of disappearing support from governments that believe they have already given enough incentives to this slowly-developing group.
The first development has solar panel maker Trina (NYSE: TSL) announcing $143 million in financing for a new plant in Thailand, with all of the money coming from local lenders that almost certainly have government ties. The second has electric car maker BYD (HKEx: 1211; Shenzhen: 002594) reporting annual results that showed a surge in its EV business last year thanks to government incentives, setting the stage for a possible rapid slowdown this year as those incentives get set to retire. Read Full Post…
The following press releases and news reports about China companies were carried on March 29. To view a full article or story, click on the link next to the headline.
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Anbang Trumps Marriott (NYSE: MAR), Raises Offer for Starwood (NYSE: HOT) to $14 Bln (English article)
China Bank Profits Flat-Line as Bad Debts Continue to Soar (English article)
Alibaba’s (NYSE: BABA) Cainiao Logistics Arm Forms Alliances, In Same-Day Delivery Drive (Chinese article)
Shanghai Disneyland (NYSE: DIS) Sells Out for Opening Day (English article)
The following press releases and news reports about Chinese companies were carried on March 4. To view a full article or story, click on the link next to the headline.
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The following press releases and news reports about Chinese companies were carried on February 24. To view a full article or story, click on the link next to the headline.
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Unisplendour (Shenzhen: 000398) Scraps Western Digital (Nasdaq: WDC) Stake Buy (Chinese article)
TCL (Shenzhen: 000100), Unigroup to Form 10 Bln Yuan Strategic Acquisition Fund (English article)
Parkson (HKEx: 3368) to Close Chongqing’s Top Foreign Owned Department Store (Chinese article)
Hugo Boss (Frankfurt: BOSSn) Cuts Prices to Try to Revive Weak China Sales (English article)
Trina Solar (NYSE: TSL) Acquires a Solar Cell Factory in the Netherlands (PRNewswire)
Bottom line: The EU’s extension of punitive tariffs to China-made solar panels transshipped through shell factories in Malaysia and Taiwan could kill a recent wave of offshore factory construction by Chinese manufacturers.
EU freezes out Chinese solar panels in Taiwan, Malaysia
A recent offshore movement by Chinese solar panel makers seeking to avoid western anti-dumping tariffs could come to a sudden halt, with word the European Union (EU) is extending its previously announced punitive duties to Taiwan and Malaysia. The EU’s ruling means it believes that many of the offshore solar panel plants recently built by Chinese manufacturers are little more than shells designed to hide the true origin of their products.
This story dates back 3 years, and began when the EU levied anti-dumping tariffs on Chinese-made solar panels after determining manufacturers were receiving unfair government support via policies like cheap land, low-interest loans and export rebates. Chinese manufacturers quickly agreed to raise their prices to levels comparable to those of western rivals in a bid to avoid the tariffs. But then they almost immediately began to violate the spirit of that agreement by offering discounts to buyers in other ways. Read Full Post…
Bottom line: Yingli’s new bank loan will be followed by a major restructuring that will force big losses on bond and shareholders, while a new asset-backed bond program to help the broader panel sector raise money will meet with tepid reception.
Beijing throws new lifelines to Yingli, solar sector
China is throwing a couple of lifelines to its struggling solar panel sector, including a relatively large rescue package for Yingli (NYSE: YGE), the player in the most precarious position. That package will see a consortium of banks, led by the policy-driven China Development Bank, provide Yingli with 2 billion yuan ($300 million) in funds as the company tries to reorganize its financially strapped balance sheet.
Word of the rescue package comes as media are reporting separately that China is preparing a much bigger lifeline for the sector, by allowing solar panel makers to sell bonds backed by the growing number of solar farms they are self-developing. Such farms provide a steady source of income from the power they generate, and thus should theoretically be more attractive to investors than directly investing in the financially-challenged solar panel makers themselves. Read Full Post…
Bottom line: The large premium being offered in Trina Solar’s new buyout reflects a recent flood of private equity chasing privatization deals for US-listed Chinese firms, and could breathe new life into many previously announced bids that have become dormant.
Trina gets rich buyout offer
The homeward migration by US-listed Chinese firms has taken a turn into the new energy sector, with solar panel maker Trina (NYSE: TSL) becoming the first major player in the space to announce a management-led buyout offer. Throughout the current round of buyouts that has seen some 3 dozen US-listed Chinese companies announce privatization bids this year, few have come in the new energy sector that includes about a half dozen of China’s top solar panel makers listed in New York.
That’s not to say that New York has been a comfortable place for these companies. Most of the big names saw their shares soar in their first few years in New York, only to watch them tumble between 2011 and 2013 as panel prices plunged due to massive oversupply. That downturn saw the departure of 2 of the sector’s biggest names from Wall Street, though the exit of Suntech and LDK was prompted by bankruptcy rather than privatization. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 15. To view a full article or story, click on the link next to the headline.
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Fairchild Semiconductor (Nasdaq: FCS) Turns Down Higher, Unsolicited China Offer (English article)
The following press releases and media reports about Chinese companies were carried on December 12-14. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Buying South China Morning Post, Aiming to Influence Media (English article)
