Daimler used a 5% stake for Beiben Holdings 16%, is it worth it?
Yesterday, BAIC announced that it has invested in Daimler to
strengthen long-term strategic cooperation between the two parties and
currently holds a 5% stake in Daimler AG. The transaction consisted of 2.48% of
the direct shareholding and the right to obtain additional voting rights equal
to 2.52% of the shares.
After Geely Li Shufu, Beiqi made a wish to take shares in
Daimler. So far, two of the world's leading "car inventors" have two
of the top three shareholders from China, the ratio of the two shares increased
to 14.69%, which is the other major Daimler's Kuwaiti sovereign fund 6.8% More
than twice the shareholding.
This result is in line with the “gossip” that Beiqi recently
acquired 4% to 5% of Daimler’s acquisition.
As early as four years ago, Xu Heyi publicly disclosed at
the Beijing Benz 10th Anniversary Celebration that BAIC is in talks with
Daimler AG about the acquisition of shares. If the shareholding is successful,
the BAIC Group will become one of Daimler's major shareholders.
However, BAIC has not shown any further progress since then.
However, the interest rate of Geely first purchased 9.69% of Daimler and became
the largest single shareholder of Daimler, which made the relationship between
BAIC, Daimler and Geely new. focus point.
This means that after the opening of the auto joint venture
stocks, the secret contest between BAIC and Daimler finally has a solution that
both sides are willing to nod.
It also means that the news that Daimler has increased its
shareholding in Beijing Benz is not far from the real hammer.
Currently,
BAIC holds 51% of Beijing Benz and Daimler holds the remaining 49%.
The move by Beiqi to buy Daimler shares will strengthen its
investment partnership with Daimler in Beijing Benz. Secondly, it can also
alleviate the suspicion of Beijing Benz's joint-stock ratio change, because
there has been news that Daimler plans to increase its shareholding in Beijing
Benz from 49% to at least 65%.
With the 16% stake in Beijing Benz and the 5% exchange with
Daimler, isn’t the deal worthwhile?
At least for
Daimler, this is a “just-needed transaction”.
For the way of this acquisition, BAIC did not disclose too
much. However, some analysts said that how Beiqi took a stake in Daimler was
very similar to that of Geely's shareholding in Daimler. It was purchased
directly through the secondary market.
Mercedes-Benz CEO Tsai Che said publicly: "Welcome
investors from China. However, Chinese investors who buy Daimler can only buy
Daimler's public offerings from the market, and will not involve other
channels."
On the 12th of this month, Daimler issued an early warning
to investors that it is expected to lose 1.6 billion euros before the interest
and tax in the second quarter of 2019, which is quite different from the
group's profit of 2.6 billion euros in the same period last year. The data
shows that Mercedes-Benz's global sales in the first quarter fell by 7%.
Not to mention that Daimler has lowered its profit forecast
three times in the past 12 months. After undergoing a reassessment of the
measures taken by the government and the courts on Mercedes-Benz diesel
vehicles, Daimler suffered a loss of 1.6 billion euros, an increase of about 10
in response to the increase in the recall period associated with Takada
airbags. The provision of 100 million euros has also made Daimler’s situation
worse.
The current auto industry has to invest heavily in electric
vehicles and self-driving cars. This is undoubtedly a very lucrative project.
At the same time, the slowdown in China’s auto sales growth, the weak European
market, and the tight global trade have cast a thicker eye on the future of the
auto industry. fog.
At this time, for a company, the actual "Wanjin
Oil" is the silver of white flowers.
So what
about the deal for BAIC?
The immediate advantage is that, due to the news of the
acquisition of Daimler shares, Beijing Auto's highest intraday gain of 8%,
closed up 2.77%, reported 5.19 Hong Kong dollars/share; Beiqi Blue Valley
intraday rose 9.72%, closed up 5.88 %, reported 8.28 yuan/share.
Also, even if Daimler raised its shareholding in Beijing
Benz to 65% in the future, it does not mean that BAIC has completely lost
control of Beijing Benz. Beiqi shares in Daimler, on the one hand, to expand
the group's business, on the other hand, it can also hold a 5% stake in Daimler
and indirectly hold shares in Beijing Benz.
Under the premise that everyone is in dire straits, whether
it is Daimler or BAIC, sacrificing part of the control rights and bringing some
breathing space to the other side is a reasonable decision to take a step back.
Also, after Beiqi became a shareholder of Daimler, the three
companies, BAIC, Daimler, and Geely, sat on the same boat. Li Shufu once said
that there will be only two or three companies left in the auto industry in the
future. BAIC urgently needs to change its mix. It is not impossible to buy
tickets through Daimler's shareholding and try to realize cross-shareholding
with Daimler and Geely. It is not impossible to revitalize its resource
advantages as a state-owned enterprise.
If this is
the case, the only thing that needs to be confirmed is who is the "big
brother" in the process of combining the three giants.
There are not many cases of cross-shareholding in the auto
industry. Many of them have ended up with disappointment. Daimler once had an
unpleasant experience of cross-shareholding with Chrysler. Now Nissan and
Renault is still in a mess.
On the contrary, Toyota has a healthier and longer-lasting
relationship with Japanese companies such as Mazda, Panasonic, and Suzuki.
cross-shareholding stakeholders are business partners with
business relationships, and in the same supply chain, the closeness of this
community relationship is a major problem in cross-shareholding, which may be
the future of BAIC. Facing.
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