Category: Money Tips Date: 2006-10-11
2005 M & A Torch, Zeng Tan Xuguang of fame, is also a cause they once bullish Weichai development strategy, but with the developments, Weichai Power management and major shareholder, China Heavy Duty Truck is between love and hate so that in early 2006 Weichai difficult.
Weichai Power control of the tug of war exposure CCTV was elected after the 2005 annual economic figures Tan Xuguang not easy.
January 6, 2006, 10, Weichai Power (2338.HK) successively issued a bulletin saying unusual price and volume fluctuations.
In the January 13, the gold analysts published, entitled "Weichai most likely will lose its largest customer," the report, so that Weichai Power in a day wiped out the market value of 528 million Hong Kong dollars. The paper is expected in 2006 Weichai may lose its largest customer, China Heavy Duty Truck (000951.SZ), therefore Weichai in 2005 and 2006 engine sales forecast down 2%, respectively, and 18%.
January 18, Weichai Power issued a notice stating in explicit terms of the stock to resume trading: the end of this announcement, the Company has not yet received CNHTC January 2006 orders. The Company wishes to clarify that the company has never announced or indicated that they would stop the supply of products to CNHTC, and has never received CNHTC under orders to stop their supply. The company has been actively seeking the opportunity to discuss with the Chinese heavy truck CNHTC specific orders for the year 2006 issues. However, as of this announcement, have not been China Heavy Duty Truck in a positive response.
At the same time, from the announcement can be seen between the lines: Weichai bought from Hangzhou, China Heavy Duty Truck Engine Factory (hereinafter referred to Hang Fat Factory) regarding almost failed, because the article mentioned: Once a framework agreement not be completed, the Company believes be returned to the Company under the Framework Agreement have been paid 80 million yuan deposit.
January 20, Weichai Power re-release is not unusual movements in share price and volume announcement ... ...
All of these Weichai Power chairman Tan Xuguang seems to have foreseen. January 7, while Tan Xuguang neck, stiff neck, action and inconvenient, but still should be some acceptance of the "excellence" magazine interview on the grounds that he is serious about the word faith.
2005 M & A Torch, Zeng Tan Xuguang of fame, is also a cause they once bullish Weichai development strategy, but with the developments, Weichai Power management and major shareholder, China Heavy Duty Truck is between love and hate so that in early 2006 Weichai difficult.
China's heavy truck vehicle do you want to the engine and vehicle parts market, and while doing engine Weichai also hope that the vehicle assembly and parts to the development of an industrial chain of two links, must be derived from two closed-loop industrial chain, can not tolerate anyone who, conflict is inevitable.
In a control and anti-control of the contest, the old friends become rivals, while not ending the story, even if no one knows what the outcome, but the harmony in which money may be more representative of the practical interests of all parties.
Acquisition Torch enmity Weichai with China Heavy Duty Truck for the contradiction is widely considered to be due to mergers and acquisitions Hang Fa plants caused by the fact that really the case, it is appropriate.
Hang Fat Factory was founded in 1958, under the CNHTC present, the main products Steyr series diesel engines, and both belong to China's heavy truck subsidiary of Weifang plant formed a strategic north-south pattern of the engine echoed.
In 2004, the Weifang plant listing in Hong Kong, heavy truck to the Hong Kong Stock Exchange are committed to Hang Fa factory commissioned by the Weifang plant operation and management. Heavy Duty Truck also promised, no longer producing plant in Hangzhou made the same type of engine.
In February 2005, Weichai Power to the Chinese heavy truck to pay 80 million yuan deposit to require the exclusive acquisition of the Chinese heavy truck subsidiary of Hang hair factory, valid until December 31, 2005.
At this point that, in the largest shareholder of China Heavy Truck's assurance, Weichai Power in order to be successfully listed in Hong Kong. In addition, China announced Hang heavy truck plant no longer produces the same type of hair engines, but also to ensure its credibility as Weichai largest shareholders. It can be said that in the circumstances, mergers and acquisitions Hang Fat Factory Weichai beneficial to both sides harmless.
However, the problem lies in the mergers and acquisitions for Torch.
During the interview, Tan Xuguang told reporters Weichai the most valued part of the Torch of the gearbox. But it can not deny that the Torch have both Shaanxi Heavy Duty Truck 51% of the shares, which is Torch of the most high-quality assets, Weichai want to enter the vehicle intended to clear the area.
As the largest shareholder of China Heavy Truck how can I do not know they were in danger: If the Weichai alliance with Shaanxi Heavy Duty Truck, its boss's seat will be the biggest impact. Therefore, regarding the acquisition of Torch, the Chinese heavy truck originally proposed by the heavy duty truck to the Weichai Torch acquisitions, and in the repeated insistence of Weifang, China's heavy truck as the major shareholder had agreed to come forward by the Weichai Torch acquisitions.
Originally Torch is concerned, the two sides have had suspicions, but then came out Weichai to stop the supply of engines to China Heavy Duty Truck rumors. China's heavy truck was already on pins and needles, and its listing in Hong Kong is also hoped that this year, then select Cancel and Weichai hair factory in Hangzhou transactions, seems inevitable choice.
