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2.5 billion in a ditional food agency Tunhe differences

May 20, COFCO Tunhe (600737.SH) released a non-public offering plan, not less than 10.47 yuan to be issued at a price of 25,000 million shares, raising net proceeds of not more than 2.57 billion yuan for the acquisition of the Group of sugar business assets, tomato chain extension and solutions the industry competition.
matter for the private placement, brokers said researchers announced the report unanimously approved. The same day, also give the company Societe Generale Securities recommends rating.
However, one side is the sea, while the flame.
secondary market reacted strongly to the day, shares fell 7.16%. Since then, the company share price shocks all the way down, during a low of 9.81 yuan, representing a price of 10.47 yuan private placement 6.73% shrink. May 31, COFCO Tunhe was up 2.18% to close at 10.32 yuan, still lower than the issuance price. June 1, COFCO to close at 10.5 yuan Tuen River, and finally return to additional reserve price.
It is noteworthy that, in the large grain Tunhe shareholder COFCO Group, as the central level, the food groups should not allow the issuance of failure.
as a footnote, in order to improve the whole food chain in the sugar industry in the layout, COFCO has been extended to the whole industry chain overseas.
5 月 29 Japan Food Group announced that the Australian Foreign Investment Review Board (ForeignInvestmentReviewBoard) has approved the COFCO Group TullySugarLtd. Acquisition program. 43 per share, according to COFCO offer to Australian dollars, Tully valued at approximately 132.9 million Australian dollars, its main business is the sugar mill.
expansion can be increased
in the private placement, the company has de facto control of those food groups (59.60% stake) to be less Pay 100% stake in Mongolia, and not less than 6.5 billion higher than the 1.3 billion in cash and does not participate in this subscription, and the commitment to issue shares after the completion of no less than 55%.
The raised funds will go into the ten projects, total investment of 3.889 billion yuan project, plans to invest 2.57 billion yuan fund-raising, of which about 69.6% of the sugar industry to invest in the direction of some, mainly for new and acquisitions south of the sugar factory.
In addition, the second largest shareholder will be a wholly owned subsidiary of COFCO China Sea King Sugar Co., Ltd. (hereinafter referred to as “North China King”) injected into the listed companies.
According to the feasibility of the acquisition of food Tunhe report into the North Sea assets of the company to enter China Jin “Sugar City Southern Tide key deployment.
Jin Hua North Sea from 2010 7 inception the company has good profitability. in the first quarter operating income of 283 million yuan, net profit of 18.582 million yuan.
Bank Securities analyst Liu have said, “North China is a contribution from fresh sugar fastest and most direct asset, (the former majority shareholder) Jin Hua Group, the company once controlled many times during the transformation of sugar yield of its 2007/2008 crop exceeded 9 million tons. Hua Jin 2010/2011 crop sugar sugar yield 71,000 tons, including 64,000 tons of white sugar, brown sugar 07,000 tons. “
” Company of the original production of beet sugar in the 35 million tons, this will add about 27 million tons of sugar cane, consider the processing capacity of 30 million tons of raw sugar (Caofeidian project), annual will reach 100 million tons of sugar production scale. “Societe Generale analyst Zhao Qin that the securities industry.
In addition, this private placement the company also increased its investment in tomato industry. In addition to the controlling shareholder own tomato sauce factory reverted after also add 10 million mu of leased plant and the expansion of the annual output of tomato lycopene production capacity of 20 tons. Upon completion of this issuance, the company tomato paste production is expected to reach 35 million tons, a capacity of lycopene of 30 tons.

“The private placement in the long term is the company positive. “An industry researcher told reporters,” began the third quarter last year, the price of tomato paste started bottoming out, from the current market situation, demand for this year tomato sauce should be slightly higher than the same period last year, after the acquisition of assets of the Group results of tomato sauce expected to rebound. “
” But is still in short supply situation in the domestic sugar price fluctuations influenced by international price of sugar. The company projects the acquisition, Inner Mongolia in the grain, the North Sea Hua Jin, Longchuan, Dawn was the original four sugar mills to directly contribute to profits, while other projects will also be sugar reached its capacity in 2012, the expansion of production capacity expected to boost the company future performance improvement. “
Institutional money differences
However, the researchers compared the project approved private placement, COFCO Tunhe have institutional shareholders are contrary views.
5 20 May, announced a private placement, shares fell 9.7% over the previous trading day opened, and ultimately to close at 11.41 yuan, falling 7.16%, the same day turnover 3.62 million yuan, the recent high.
sell side force was prevailed, the amount of the top three sellers were selling agency of 75,932,600 yuan, 30,383,900 yuan, 16,391,300 yuan, if the closing price of 11.40 yuan to day basis, is equivalent to 665.49 million shares were sold, 266.29 million and 143.66 million shares.
“withdrawal of funds can be considered normal, the broader market conditions are not good, institutional shareholders The refinancing program is very careful. “A private person, told reporters in Beijing,” is the secondary market to sell the main body, the object of the company private placement market are generally a PE class institution or a large organization, strong financial strength. “
Awkwardness as a fund Tunhe COFCO, one quarter of controlling shareholders than outside the nine shareholders of circulation, there are eight are institutional shareholders, consists of five funds, two social security funds and an insurance investment products.
which Lion Balanced Fund holdings to 1,696.27 million shares topped the list, followed by social security compared with 110 combinations, 604 portfolio, UBS SDIC stability economic sector funds, the value of Cathay Pacific Select Fund Jin Ding, Invesco Great Wall Domestic Demand fund, Pacific Investment and general insurance products and the JP Morgan Alpha Fund.
However, since the fourth quarter last year, in addition to holding New Cathay Pacific TIS, Invesco Great Wall and the JP Morgan three funds, and the remaining five institutional shareholders have been varying degrees of reduction.
the private parties that “in the current basic food Tunhe surface have bottomed out, with a quarterly report is deficit. In the earnings outlook is not yet clear when the institutional shareholders that the Company issued share capital may become diluted the General Assembly led to performance, so take the behavior of panic selling. “
Reporter noted that COFCO Tunhe 2010 results have caused strange face, first net profit down 50% over the same period, was later changed to losses of between 54 to 59 million yuan . the final annual report, company main business revenue of 2.937 billion yuan, net profit loss of 55.1494 million yuan, equivalent to 0.05 yuan per share.
this, the company attributed the substantial profit in tomato sauce decline, however, in the company of “other current liabilities” under the “fair value of forward contracts in sugar futures” column, the amount has increased to 84.71 million yuan from the beginning of the year 393 million yuan, an increase of 308 million a year by The media have questioned the company a substantial loss on the hedging transaction.
However, a quarterly this year, due to the reduction of futures margin, other receivables from the company early this year, 748 million yuan decreased to 3.97 billion, an increase of up to 47%; and other current liabilities also increased from 3.9 billion to the beginning of this year to 200 million yuan.
tomato sauce and sugar but rising costs and the Tuen Mun River reduction in investment income of cement, the company is still a substantial quarterly loss of 106 million.
In this regard, the small band of Hai Tong Securities researcher in the study report that is still present in the tomato sauce from a surplus of supply and demand to tight between the quilibrium state, the industry has not yet entered a substantial rapid increase in access in the future as the global inventory process to the end of the 2010/2011 crop production cuts affect the birth or the expected price increases gradually in the second half show. “