Plum Bio Transnational Reorganization Fails to Pursue South Korea's Hi-Jie Legal Responsibility

South Korea's largest food company to land on a-share A-share, Plum Bio (600873, closing price of 9.14 yuan) assets restructuring has attracted attentionBut after nearly half a year of negotiations, Meihua bio not only with South Korea's Shijie talks, but also threatened to pursue each other's legal responsibilitiesBoth sides turned from "love- and love" of "lovers" to strangers to the "enemy." Yesterday, Meihua Bio announced that the listed company suspended the issue of shares to buy assets because of South Korea's Hijao refused to address inter-industry competition issues and the performance commitments of the targetpbFPlum Bio: Restructuring failure due to South Korea's HijapbFin January this year, Meihua Bio in the issuance of asset purchase progress announcement revealed that it will be South Korea's largest food company Hi-Jie First Sugar Co., Ltd(hereinafter referred to as "Hi-Jai") issued shares to buy assetsAccording to the announcement at the time, Meihua Bio intends to purchase The amino acid fermentation assets and its supporting assets in China by issuing shares, including the 100% equity interest of Hija's foreign-invested enterprises in China - Shijie (Shenyang) Biotech Co., Ltd., Xijie (Chatcity) Biotech Co., Ltd., and Liaocheng Blue Sky Thermal Power Co., LtdpbFAt the same time, eight natural shareholders, including Meng Qingshan, the controlling shareholder of Meihua Bio, intend to transfer 550 million shares to the Hi-Jie Agreement, accounting for 17.69 percent of the total share capital before the offeringUpon completion of the transaction, Hijwill will become the largest shareholder of Plum Bio, with a combined 30% stakeIn the initial stages of the restructuring, the two sides quickly reached a tacit agreement and signed a framework agreement on 7 MarchBut in the past two months alone, the two sides have split up again, ending the restructuring planpbFSo far, the underlying assets, performance commitments, valuations and Mr Hijie's holding intentions have been a mystery, as The Company has not issued a draft restructuringThe mystery behind the failure of the asset restructuring was not solved until Plum Bio revealed the causepbFEach investment treasure (WeChat public number: mjtzb2) reporter noted that the original trading plan proposed by Hijie did not include its offshore amino acid assets and businessThis has led to competition with listed companies in its offshore business after Hijdge became a controlling shareholderAccording to Meihua Bio, Hijie rejected the foreign industry business into the listed company, according to the "listed company supervision guide No4" issued a commitment, not to become a controlling shareholder of the three solutions to the inter-industry competition, and this has become the first major reason for the termination of the asset restructuringpbFThe other reason is that the target of the plum bio acquisition is a company that has been losing money for two consecutive years, and the overall performance of the target company in 2014 and 2015 is in a state of large routIt is worth mentioning that for these three target performance consecutive losses and net assets of only 1.8 billion yuan, the two sides mentioned the expected valuation of 3.96 billion yuanThis means that the underlying premium has doubled over net assetsBut in response to the high-premium acquisition, MrHijer refused to commit to the target's performance over the next few yearsAlthough shareholders of listed companies such as Meng Qingshan have said they can make concessions to the transfer price of old shares, MrHijie has not expressed an acceptanceAs a result, Meihua Bio believes that the underlying company's valuation is very different from The 3.96 billion yuan stake that MrHiger expects, which is the second reason to end the restructuringpbF　　Mr Hijie offered to buy pbF and yesterday afternoon, Meihua Bio held an investor briefing to end the restructuring, and more puzzling details surfaced as investors questioned them Hi-Jie borrowed Meihua Bio landing A shares is not led by listed companies, but by The Higge initiative, and is prepared to take a controlling stake from Meng Qingshan and other shareholders at a high premium of 14 yuan In fact, the price before the suspension of the sale of Plum Bio was only 9.14 yuan, The price proposed by Xijie's purchase price than when the suspension of the share price is 34.7%, enough to show good faith pbF　　Curiously, Mr Hijer offered a cross-border restructuring and offered a high-premium takeover offer, but in fact "didn't cooperate" with the solution to the real problems in the deal This contrast makes the plum creatures feel that they don't understand Some investors asked: "At first to buy for 14 yuan, why is the premium so much? "We also want to know, " says The Plum Creature And Meihua biological repeatedly mentioned that Shijie proposed that the reorganization of plum biology should be a full understanding of China's laws and regulations and practices And the competition is a problem that Hijie needs to solve, since the decision to restructure, indicating that there is a solution, so "once in the process, we must have problems to solve the problem, not to say failure." "
pbF it is worth mentioning that the previous framework agreement between the two sides expressly provides for the liability for breach of contract, mentioned that if the breach of the agreement results in the failure to sign a formal agreement, the breaching party should pay the breach party 300 million yuan Interestingly, the 300 million yuan default payment has exceeded The Plum Bio's net profit of 220 million yuan in the first quarter of this year Plum Bio also made it clear that the company and its controlling shareholders reserve the right to pursue the legal liability of The first sugar of Hi-Jie, in accordance with the law to safeguard the interests of the company pbF South Korea's largest food company to land on A-shares, plum bio (600873, closing price of 9.14 yuan) assets restructuring has attracted attention But after nearly half a year of negotiations, Meihua bio not only with South Korea's Shijie talks, but also threatened to pursue each other's legal responsibilities Both sides turned from "love- and love" of "lovers" to strangers to the "enemy." Yesterday, Meihua Bio announced that the listed company suspended the issue of shares to buy assets because of South Korea's Hijao refused to address inter-industry competition issues and the performance commitments of the target pbF Plum Bio: Restructuring failure due to South Korea's Hija pbF in January this year, Meihua Bio in the issuance of asset purchase progress announcement revealed that it will be South Korea's largest food company Hi-Jie First Sugar Co., Ltd (hereinafter referred to as "Hi-Jai") issued shares to buy assets According to the announcement at the time, Meihua Bio intends to purchase The amino acid fermentation assets and its supporting assets in China by issuing shares, including the 100% equity interest of Hija's foreign-invested enterprises in China - Shijie (Shenyang) Biotech Co., Ltd., Xijie (Chatcity) Biotech Co., Ltd., and Liaocheng Blue Sky Thermal Power Co., Ltd pbF　　At the same time, eight natural shareholders, including Meng Qingshan, the controlling shareholder of Meihua Bio, intend to transfer 550 million shares to the Hi-Jie Agreement, accounting for 17.69 percent of the total share capital before the offering Upon completion of the transaction, Hijwill will become the largest shareholder of Plum Bio, with a combined 30% stake In the initial stages of the restructuring, the two sides quickly reached a tacit agreement and signed a framework agreement on 7 March But in the past two months alone, the two sides have split up again, ending the restructuring plan pbF　　So far, the underlying assets, performance commitments, valuations and Mr Hijie's holding intentions have been a mystery, as The Company has not issued a draft restructuring The mystery behind the failure of the asset restructuring was not solved until Plum Bio revealed the cause pbF　　Each investment treasure (WeChat public number: mjtzb2) reporter noted that the original trading plan proposed by Hijie did not include its offshore amino acid assets and business This has led to competition with listed companies in its offshore business after Hijdge became a controlling shareholder According to Meihua Bio, Hijie rejected the foreign industry business into the listed company, according to the "listed company supervision guide No 4" issued a commitment, not to become a controlling shareholder of the three solutions to the inter-industry competition, and this has become the first major reason for the termination of the asset restructuring pbF　　The other reason is that the target of the plum bio acquisition is a company that has been losing money for two consecutive years, and the overall performance of the target company in 2014 and 2015 is in a state of large rout It is worth mentioning that for these three target performance consecutive losses and net assets of only 1.8 billion yuan, the two sides mentioned the expected valuation of 3.96 billion yuan This means that the underlying premium has doubled over net assets But in response to the high-premium acquisition, Mr Hijer refused to commit to the target's performance over the next few years Although shareholders of listed companies such as Meng Qingshan have said they can make concessions to the transfer price of old shares, Mr Hijie has not expressed an acceptance As a result, Meihua Bio believes that the underlying company's valuation is very different from The 3.96 billion yuan stake that Mr Higer expects, which is the second reason to end the restructuring pbF　　Mr Hijie offered to buy pbF and yesterday afternoon, Meihua Bio held an investor briefing to end the restructuring, and more puzzling details surfaced as investors questioned them Hi-Jie borrowed Meihua Bio landing A shares is not led by listed companies, but by The Higge initiative, and is prepared to take a controlling stake from Meng Qingshan and other shareholders at a high premium of 14 yuan In fact, the price before the suspension of the sale of Plum Bio was only 9.14 yuan, The price proposed by Xijie's purchase price than when the suspension of the share price is 34.7%, enough to show good faith pbF　　Curiously, Mr Hijer offered a cross-border restructuring and offered a high-premium takeover offer, but in fact "didn't cooperate" with the solution to the real problems in the deal This contrast makes the plum creatures feel that they don't understand Some investors asked: "At first to buy for 14 yuan, why is the premium so much? "We also want to know, " says The Plum Creature And Meihua biological repeatedly mentioned that Shijie proposed that the reorganization of plum biology should be a full understanding of China's laws and regulations and practices And the competition is a problem that Hijie needs to solve, since the decision to restructure, indicating that there is a solution, so "once in the process, we must have problems to solve the problem, not to say failure." "
pbF it is worth mentioning that the previous framework agreement between the two sides expressly provides for the liability for breach of contract, mentioned that if the breach of the agreement results in the failure to sign a formal agreement, the breaching party should pay the breach party 300 million yuan Interestingly, the 300 million yuan default payment has exceeded The Plum Bio's net profit of 220 million yuan in the first quarter of this year Plum Bio also made it clear that the company and its controlling shareholders reserve the right to pursue the legal liability of The first sugar of Hi-Jie, in accordance with the law to safeguard the interests of the company pbF Share it on feed