Generally speaking, it is good to issue shares to buy assets, indicating that the company is in an expanding state, and at the same time, buying with shares will not increase the burden on the company. But how about issuing shares to buy assets? We can't generalize, but we should explain the following terms. In the Measures for the Administration of Major Asset Restructuring of Listed Companies, the CSRC has made the following provisions for listed companies to issue shares to purchase assets:
1. If the M&A committee of the listing department of the CSRC needs to review the listed company's purchase of assets by issuing shares, and the proportion of matching funds raised at the same time does not exceed 100% of the transaction price of the assets to be purchased, it will be reviewed by the M&A committee (if it exceeds 100%, it will be regarded as a non-public offering and reviewed by the issuing department).
2. The stock price shall not be lower than 90% of the market reference price. The market reference price is one of the average trading prices of the company's shares in 20 trading days, 60 trading days or 120 trading days announced by the board of directors. The resolution of the board of directors to purchase assets by issuing shares this time shall explain the basis for selecting the market reference price. Before the approval of China Securities Regulatory Commission, if the stock price of a listed company changes significantly compared with the original issue price, the board of directors may adjust the issue price according to the set adjustment plan.
Generally speaking, it is good to issue shares to buy assets, indicating that the company is in an expanding state, and at the same time, buying with shares will not increase the burden on the company. But how about issuing shares to buy assets? We can't generalize, but we should explain the following terms. In the Measures for the Administration of Major Asset Restructuring of Listed Companies, the CSRC has made the following provisions for listed companies to issue shares to purchase assets:
1. If the M&A committee of the listing department of the CSRC needs to review the listed company's purchase of assets by issuing shares, and the proportion of matching funds raised at the same time does not exceed 100% of the transaction price of the assets to be purchased, it will be reviewed by the M&A committee (if it exceeds 100%, it will be regarded as a non-public offering and reviewed by the issuing department).
2. The stock price shall not be lower than 90% of the market reference price. The market reference price is one of the average trading prices of the company's shares in 20 trading days, 60 trading days or 120 trading days announced by the board of directors. The resolution of the board of directors to purchase assets by issuing shares this time shall explain the basis for selecting the market reference price. Before the approval of China Securities Regulatory Commission, if the stock price of a listed company changes significantly compared with the original issue price, the board of directors may adjust the issue price according to the set adjustment plan.
3. Transaction price of purchasing assets The transaction price of purchasing assets refers to the transaction price of issuing shares to purchase assets in this transaction, but does not include the transaction price corresponding to the underlying assets invested by the counterparty in cash within six months before and during the suspension of this transaction. If the controlling shareholder, actual controller and concerted parties of a listed company acquire the rights and interests of the underlying assets within six months before and during the suspension of this transaction, the shares of the listed company subscribed for with this part of rights and interests shall be eliminated according to the above calculation method.
How about issuing stocks to buy assets? In short, as can be seen from the above, it is generally good to issue shares to buy assets. Issuing shares to increase shareholders' capital will help the company expand its business and production, but the specific situation still depends on the market reaction.