What is enterprise reorganization?
Corporate restructuring refers to the redistribution of the company's existing assets and shareholders' rights and interests in some way for a certain purpose, such as achieving long-term development goals. In addition, the narrow sense of corporate restructuring refers to the merger, acquisition and division of companies.
Ideally, company reorganization can optimize the company structure, improve the management system, enhance the company's competitive soft power in the market, and then improve the company's profitability. However, from a practical point of view, due to the influence of market uncertainty, it is often the case that the company's performance after reorganization is lower than that before reorganization.
What is the impact on shareholding?
Only for the shareholders who have served, corporate restructuring will affect the shareholding by adjusting the ownership structure. Since reorganization often involves the increase or decrease and transfer of the company's equity, on the whole, when the number of shares increases after the reorganization of the company, for a specific shareholder, its shareholding ratio in the total share capital may be relatively reduced, and its right to speak in the company will also be reduced because of the dilution of equity. If shareholders want to maintain their original position, they need to increase their shares.
In addition, corporate restructuring often attracts market attention. If the company's assets change during the reorganization, such as adding new assets or eliminating non-performing assets, and feed back to the market with a good attitude of future development, it will also affect other investors' willingness to hold shares in the stock.