Characteristics of Zhongrong Trust
According to the announcement, after preliminary consultations between the two parties, the number of shares issued by listed companies to Zhongzhi Group is expected to be no more than 300 million shares, and cash consideration other than shares will be paid to Zhongzhi Group by raising matching funds.
After the transaction is completed, the shareholding ratio of Jingwei Textile Machinery in Zhongrong Trust will increase from the existing 37.4698% to 70.4562%, and it will become the absolute controlling shareholder of Zhongrong Trust. According to the suspension arrangement of the announcement, this transaction still needs to go through the necessary regulatory approval and corporate governance procedures, and the announcement also shows that there are still uncertainties in this transaction.
In this regard, market participants generally believe that Jingwei Textile Machinery was the largest shareholder of Zhongrong Trust as early as 20 10. The continuous increase of Jingwei textile machinery shows the confidence of major shareholders in the company's future sustainable development. It is expected that after the transaction is completed, the major shareholder will further support Zhongrong Trust.
If Jingwei Textile Machinery takes over the shares held by Zhongzhi Group, the original second shareholder, Zhongrong Trust will completely become a trust company under the central enterprises after the completion of this share swap transaction. It is noteworthy that S&P Global Rating 13 also announced that the recent equity change of Zhongrong Trust is a positive development and change, because the plan is expected to strengthen the relationship between the company and the government and expand its business opportunities.
However, the impact of a single transaction itself on the credit of Zhongrong Trust is not significant enough to trigger the company's rating adjustment. Standard & Poor's Global Rating believes that the transaction may dilute the equity of Jingwei Textile Machinery held by state-owned enterprises.
However, according to the announcement of Jingwei Textile Machinery, Zhongzhi Group promises that it will never seek the actual control of listed companies after the transaction is completed, which will make it more inclined to the role of financial investors. It is expected that the actual control right of state-owned enterprises to warp and weft textile machinery will remain unchanged.