Asset divestiture is usually aimed at maximizing the company's profits or the company's overall strategic goals. The company sells some existing subsidiaries, departments, fixed assets or intangible assets to other companies to obtain cash or securities returns. The assets disposed of may be non-performing assets or excellent assets.
The way of asset divestiture
Including asset replacement, capital reduction, asset sale and other forms:
1. The so-called asset replacement refers to injecting high-quality assets outside the listed company into the listed company to replace the original inferior assets of the listed company, so that the listed company can always maintain the combination of high-quality assets. The purpose of asset replacement of listed companies is generally to adjust asset structure, improve asset quality and expand market players.
2. The so-called capital reduction, also known as "share reduction", refers to the divestiture of assets by listed companies by reducing or reducing their total share capital.
3. Asset sale is another main form of divestiture of listed companies. Generally speaking, the assets sold are not suitable for the long-term development of the company or idle non-performing assets. There are two motives for listed companies to sell assets: one is to optimize the asset structure and improve the overall quality of enterprise assets; The second is to raise new development funds.
At present, divestiture is the most important way of asset reorganization for many listed companies with poor performance.