Heavyweight Jinlong Automobile Fuqi Group Wants to Block Dongfeng


A long-known domestic passenger car listed company, Jinlong Automobile, has announced that the controlling shareholder of the company intends to be transformed into a Fuzhou Group by the Haiwing Group, a subsidiary of the Xiamen State-owned Assets Supervision and Administration Commission.

Under the background of the strategic restructuring of Dongfeng Group, industrialists and capital marketers quickly linked the changes in the shares of Golden Dragon Motors to Dongfeng. They believe that Dongfeng is likely to be the driving force behind the scenes, with the intention that the two companies in Fujian Province will have the most The strength of the entire vehicle company is embraced.

In this regard, Dongfeng Group insiders gave a clear denial, "This has nothing to do with us, it is entirely the local government level to promote this matter."

People close to Fuqi Group also stated that this matter has nothing to do with the Dongfeng, and contrary to what the outside world thinks Fuqi and Jinlong have packaged with Dongfeng Talks and reorganized, “like the new Ryoma project that was launched recently, it is not reconciled to being reorganized and incorporated. Fu Automobile's initiative to seek independent development. If Jinlong Automobile is brought under its flag, it will be able to set higher barriers for the Dongfeng Automobile Group."

Dongfeng Group insiders also admitted that the strategic restructuring of Fuqi was not going smoothly, and the current due diligence on Fuqi was still not completed and both parties are still in the intentional agreement stage.

It has been nearly a year since Dongfeng and Fuzhou signed a strategic reorganization agreement in May last year. Despite the support of local governments at both the central and local levels, this reorganized drama of the auto industry, which is highly favored by the outside world, is still intertwined with multiple interests. It is difficult to make substantial progress.

For more than three months after Fuqi Motors will release the “Major Issues Suspension Notice” in mid-November last year, the “major reorganization event” of Jinlong Auto finally surfaced.

On February 13, Golden Dragon Motors announced that the controlling shareholder of the company is planning to change. The announcement mainly disclosed two aspects: First, the existing controlling shareholder of Xiamen Golden Dragon Motors Co., Ltd. and its wholly-owned subsidiary, Jinlong Motor intends to allocate 20.7% of the shares held by Jinlong Auto to free transfer. Fuqi Group; Second, Haiyi Group signed the “Equity Custody Termination Agreement” with Fuqi Group on January 29, and the 13.52% equity of Golden Dragon Motors held by Fuzhou Group is no longer entrusted to Haiyi Group. Exercise full shareholder rights on its own.

This means that in the future, Fuqi Group will likely replace Haiyi Group and become the controlling shareholder of Golden Dragon Motors. Previously, around the control of the Golden Dragon car, Fuqi and the Xiamen local government for a three-year battle between the Fusha, and ultimately in the mediation of the Fujian Provincial Government, Xiamen local control of the Golden Dragon car ended.

In September 2001, in order to make the Fujian automobile industry bigger and stronger, the Fujian Automobile Administration Department intended to use the listed company of Golden Dragon Motors to integrate Fujian automobile resources. Fuqi Motors transferred 17% of the equity of Jinlong Auto from Xiamen Finance Bureau. Become the company's largest shareholder.

However, after Fuqi entered the main Xiamen Automobile (the predecessor of Jinlong Automobile), it contradicted Xiamen's state-owned assets investment company, the second-largest shareholder representing the interests of local governments in Xiamen City. Up until 2004, Ling Yuzhang and Wang Zhiyong, representing Fuzhou Automotive Group, withdrew from the board of Xiawi Automobile. The Fuqi Group did not withdraw from the real management of Xiamen Auto but retained the original shares.

Last May, just before Dongfeng Group strategically reorganized Fuqi Group, Xiamen State-owned Assets Supervision and Administration Commission deliberately arranged an asset adjustment to transfer 7.68% of the third largest shareholder to Shanghai Wing Group, making Haiyi Group's stake in Golden Dragon Motors. More than Fuqi Group, whether it is real management or equity, has strengthened the local government's control and control position, so as to avoid Dongfeng's reorganization of the blessings and the passing of the hand to Jinlong Auto.

Nowadays, the local government of Xiamen City, which has been controlling the control of Golden Dragon Motors for many years, has voluntarily waived its controlling interest and allowed Golden Dragon to return to Fuqi. This can be suspicious. The reporter then called Jinlong Motor's Office of the Office of the Secretary of the Board of Directors. The other party stated that this is the requirement for the strategic development of the automobile industry in Fujian Province. “We do not know the specific reasons. We must ask the government.”

Fuqi's Abacus A senior person in the commercial vehicle industry who understands the "Fusha dispute" believed that this was definitely not a corporate-level behavior, but rather the will of local governments behind Fuqi and Jinlong Automobiles. "The Xiamen government has spent a good amount of time. After Jin Jin had been recaptured by Da Jin, how could it be transferred out without compensation? Even if it was transferred to Fuqi as stated in the announcement, there must be other exchange conditions, such as the car project that Xiamen always wanted to launch.”

National Securities Auto Industry analyst Cao He also believes that the equity change may be the Fujian provincial government to promote the reorganization of Dongfeng and Fuqi. It will pack the two best car companies in the province and discuss cooperation with Dongfeng.

However, insiders of the Dongfeng Motor Group clearly denied this. "We have nothing to do with us. It is entirely at the local government level that is promoting this matter."

People close to Fuqi Group also denied this claim, and revealed that Dongfeng has not been in contact with Fuqi for a long time. There has been no substantial progress in the restructuring negotiations between the two sides. With the outside view that Dongfeng promoted the control of Golden Dragon by Fuqi, instead of taking advantage of Fujian's two best-quality companies, people close to Fuqi Group believe that this is a measure that Fuqi is not willing to be reorganized and pursue independent development.

In fact, following the signing of the strategic reorganization agreement between Dongfeng and Fuzhou, Chairman of the Fuzhou Automobile Group Lian Xiaoqiang has always emphasized that the two sides are equal in terms of cooperation rather than reorganization, and Dongfeng’s cooperation “is still talking about the emotional stage” and has not entered. The essence of marriage talk.

However, the above-mentioned sources close to the Fuqi Group revealed that Jinlong’s reversion to Fuqi is still very contingent and uncertain. “Standing from the perspective of the Xiamen Municipal Government, we are certainly not willing to let go of Jinlong. Even if we let go, it is not really gratuitous. Allotment should be compensated from other aspects. If the conditions proposed by Xiamen City are felt by the province to be difficult to satisfy, it is not impossible that this matter is eventually shelved.”

At the conference of the Qiteng brand not long ago, Lian Xiaoqiang stated that the future Fuqi will rely on “self-supporting families”, and Southeast Motor, Fujian Daimler, Qiteng, and Jinlong will be listed as the four drivers driving the development of Fuqi in the future. wheel.

Those who are close to the Fuqi Group believe that standing on the perspective of the entire industry, Dongfeng’s restructuring of Fuqi is a good thing, but Fuqi certainly does not want to be merged. “Unless the provincial government is pushing for it, we don’t know when it will be delayed. Like Fulong's integration of Golden Dragon, there is no strong push from the government and it may be possible to drag on Huang.

Mergers and acquisitions of state-owned enterprises have never been easy. Like Dongfeng and Fuqi, the interests of Fujian, Fuzhou, and Xiamen are involved. It is even more difficult for Fuzhou, Golden Dragon, and many companies under Fuzhou to be involved.

In the international arena, despite all the difficulties, Dongfeng has become a shareholder of PSA. In China, will Dongfeng be able to win in the face of a more complicated and complex financial relationship?

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