Merger in the Chinese Aviation Industry Sector

[Deino]

Just found via 'ladioussupp' (SDF)

ChengFei - JiCheng restructured to buy 100% of SAC, CAC, and Hongdu group.

http://big5.xinhuanet.com/gate/big5/news.xinhuanet.com/fortune/2014-05/19/c_126515981.htm

http://www.cac-citc.com

... and via 'A.Man' (SDF):

Chengdu Aircraft Industrial Group Purchases 100% Shares of Shengyang Aircraft Company, 100% Shares of Chengdu Aircraft Company and 100% Shares of Hongdu Aircraft Company

成飞集成(002190)18日晚间公告，公司拟采取发行股份购买资产的方式，由成飞集成向中航工业、华融公司及洪都集团三家资产注入方定向发行股份，购买沈飞集团100%股权、成飞集团100%股权及洪都科技100%股权，标的资产预估值达158.47亿元。在此次重组完成后，成飞集成主营业务将变更为以歼击机、空面导弹等研制为主。

公告称，成飞集成本次重大资产重组拟采取发行股份购买资产的方式，由成飞集成向中航工业、华融公司及洪都集团三家资产注入方定向发行股份，购买沈飞集团100%股权、成飞集团100%股权及洪都科技100%股权。同时，本次重组还将实施配套融资，即成飞集成拟向中航工业、华融公司、中航飞机、中航机电、中航投资、中航科工、中航电子、中航技、航晟投资及腾飞投资非公开发行股份募集现金，配套融资总额不超过本次交易总额的25%。

作为此次重组标的沈飞集团、成飞集团和洪都科技三者资产预估值高达158.47亿元。交易完成后，中航工业及其下属企业将合计持有本公司约141，370.80万股股份，约占发行后公司总股本的87.37%，而中航工业仍为本公司控股股东及实际控制人。

公告显示，沈飞集团2012年和2013年净利润分别为3.7亿元和2.9亿元，成飞集团2012年和2013年净利润分别为2.5亿元和3.7亿元，而作为上市公司平台的成飞集成近两年归属母公司股东的净利润则分别为5445万元和4535万元。

公司表示，本次资产注入后，上市公司的资产规模、盈利能力将得到大幅提升；公司得以整合中航工业防务装备业务板块雄厚的技术资源、市场资源以及优秀的人力资源，通过丰富产品类型、延伸产业链条、形成协同效应，增强公司抗风险能力，进一步提升公司的可持续发展能力和综合竞争力。

公司股票自2014年5月19日开市时起复牌。

Auto Translation:

Integrated into the fly (002,190) 18 evening announcement, the company intends to approach the issue of shares to buy assets taken by the integration into the flight directed issue of shares to the aircraft industry, Huarong Company and Hongdu Group assets into three parties, the purchase of 100% of the Group SAC Option to fly 100% to 100% equity stake Hongdu Group and Technology, the estimated value of the underlying assets of 15.847 billion yuan. Upon completion of the reorganization, the main business will be integrated into the fly to change the fighters, air-surface missiles and other research-based. Notice that the integration into the flight of this major asset restructuring to be undertaken by the issue of shares to buy assets from the integration into the flight the aircraft industry, Huarong and three Hongdu Group assets into the party directed issue of shares, the purchase of 100% equity interest in Shenyang Aircraft Group , to fly a 100% equity stake to 100% Hongdu Group and Technology. Meanwhile, this restructuring will be implemented supporting financing Serve fly integration intends to AVIC, Huarong, China Aviation aircraft, AMES, AVIC investment AVICHINA, AVIC Avionics, CATIC, Hang Sheng investment and soaring investment in non- public offering of shares to raise cash, the total financing package does not exceed 25% of the total transaction time. As part of this restructuring of the underlying SAC Group, fly into three groups and Hongdu technology assets estimated value of up to 15.847 billion yuan. After the completion of the transaction, AVIC and its affiliated companies will together hold approximately 141,370.80 million shares, representing approximately 87.37% of total issued share capital, while in the aircraft industry remains the controlling shareholder and actual controller. Announcements, Shenyang Aircraft Group in 2012 and 2013 net profit was 370 million yuan and 290 million yuan, Cheng Fei Group in 2012 and 2013 net profit was 250 million yuan and 370 million yuan, and as a platform for listed companies Integrated fly past two years, net profit attributable to shareholders was 54.45 million yuan, respectively, and 45.35 million yuan. The company said that after the second injection of assets, asset size of listed companies, profitability will be significantly improved; company to integrate AVIC defense equipment segment strong technical resources, market resources and excellent human resources, through a rich product types, extension industrial chain, create synergy, enhance the company's ability to resist risks, to further enhance the company's capacity for sustainable development and competitiveness. Company shares resume trading from the time May 19, 2014 opening.

Sorry for my stupidity if I misunderstand ... but that sounds like a take-over, merger or the birth of an Aerospace-giant !!!

While such a giant may be better off in the international market in the short term, it begs the question of long term monopoly fears for domestic, especially military related needs and I admit I'm really not sure if I understand this merger correctly but it reminds me heavily to the merger in the US Aviation sector some time ago, when Rockwell, McDonnell Douglas, Fairchild, General Dynamics all dissapeared and were simply merged into Lockheed Martin or Boeing ... with all the result we see now with the F-35, C-46, and several other projects !

As such I have a similar fear if this reorganisation is indeed a "merger".

Deino

 

[Grey Havoc]

An interesting development indeed.

 

[sferrin]

with all the result we see now with the F-35

The F-35 was the result of a competition between 3 teams. Even if there would have been no mergers there would still be one winner (like GD was with the F-16 for example) and a bunch of starving losers. The reason they merged in the first place is there wasn't enough work available to support that many manufacturers. The US still has 3 primes that can build fighter aircraft (Boeing, NG, and LM), 2 that can build bombers (NG and Boeing). You don't see the monopolies you do in France (Dassault) the UK (EADS/Airbus) and Sweden (SAAB).