Less than two years after the breakup, Shuangqin shares and Michelin are once again "remarried," and the latter will become a strategic investor in Shuangqin Group's holding subsidiary, Shuangqin Group (Anhui) Huali Tire Co., Ltd.
According to the announcement of the Double Money Shares, the company's holding subsidiary, Double Money Group (Anhui) Huali Tire Co., Ltd., will introduce strategic investors and implement capital increase and share expansion for Michelin Finance and Michelin (China) Investment Co., Ltd. The capital increase amounted to approximately 667 million yuan. All capital increases were subscribed and paid by Michelin Finance and Michelin Investment.
After the capital increase is completed, the shares held by Shuangqin Shares in Anhui Huili will be reduced from the original 68% to 40.8%. The percentage of shares held by Huayi Group in Anhui Warriors will be reduced from 32% to 19.2%. The newly introduced Michelin shares The Finance Company and the Michelin Investment Company will respectively hold 30% and 10% of Anhui Huili Company.
The market is no stranger to the double love of money shares and Michelin, the two sides had a joint venture in 2001 to set up Shanghai Michelin Warrior Tire Co., Ltd., Michelin holds 70% shares, Shuangqian shares 30%. However, the Michelin Warrior company had negative expectations. As of February 2010, when Shuangqin shares were listed for sale, the accumulated losses of Michelin Warriors in the past 8 years have reached 1 billion yuan.
Public information shows that in the first cooperation, as the double-money shares were only the equity holders of Michelin Warriors, and lacked the right to manage and supervise the company, this became an important reason for the market to explain the failure of the first marriage. The Michelin was introduced as a strategic investor. Shuangqian emphasized that after the completion of the capital increase, Huayi Group and Shuangqin Shares held a total of 60% of the shares, which guaranteed the controlling position of the Chinese side, even though the Shuangqin shares were to Anhui Huili. The company's controlling share ratio dropped from 68% to 40.8%, but it is still in the position of the largest shareholder.
Since the sale of equity in Shanghai Michelin Warriors, Shuangqin shares had a blank business in the tire market for passenger cars. The rapid creation of tires for passenger vehicles has become an urgent task for dual-tire tires. Therefore, in December 2010, the Shuangqin Shares announced that it will fully fund Anhui Huili Company, with a registered capital of RMB 1 billion.
It is reported that Anhui Huili Company plans to build and operate factories in Wuwei County, Anhui Province, and the scale of the factories will reach the world standard. The factory's production scale in the first stage will be more than 6 million passenger car light truck tires per year. Within 5 to 8 years from the establishment of the Sino-foreign joint venture, the final production capacity of more than 15 million light truck tires per year will be built.
Shuangqian said that the capital increase was to further speed up the “Responsible†brand car light truck tire business, with the respective advantages of Michelin and Shuangqian Company in the car light truck tire business to enhance the company’s core competitiveness, and to “back force†development. Become a mid-to-high end car light truck tire brand.
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