Su Ning Of The Large And Medium Financial Assessment Will Not Be 3.0 Billion Acquisition

Although the large and medium electrical appliances surrender the outcome of arbitration

with the Wing-lok yesterday (April 24, 2007) without further delay, but the Suning Appliance (002024) has commissioned a third party financial assessment of the medium and large appliances, and with investors to acquire large conducted an extensive communication on the acquisition of large and medium price ranges have generally recognized. Suning CEO Sun Weimin yesterday (April 24, 2007) for the first time made it clear, the rumors of the 3.0 billion purchase price too high, medium and large Suning will not buy at this price.

Industry expected "not more than 2 billion"

Suning Appliance yesterday (April 24, 2007) held a press conference in Nanjing, announced the signing of the image of artist Pan Weibo and Betty Sun endorsement agreement in advance as this confidentiality, so that the outside world once mistaken yesterday (07 24 April day) conference for the Suning announced the acquisition of medium and large. It is precisely because, despite the Suning Appliance Chain Store Industry in pioneering the introduction of image voice, but the media has focused more attention on the issue at the Su Ning, medium and large acquisitions.

This, Sun Weimin said Suning will buy 30 billion of medium and large. According to his explanation, Suning to open a single store, the average cost of 10 million yuan or so, rumors of large and medium industry 3.0 billion asking price, you can open up about 300 stores, but only 65 medium and large stores in Beijing now, if the acquisition the price is 30 billion, equivalent to five times the purchase price of medium and large, obviously the price is too high.

Suning stores in Beijing, 33, after the acquisition of medium and large stores in Beijing will be close to 100, the two work together to apparently overwhelming Beijing Gome stores in size 50, so consider the acquisition of large and medium Suning, the current focus may be is the price. Analysis of the industry in 2006 to 5.268 billion U.S. dollar state acquired 181 outlets Yongle, the average cost of each shop less than 30 million Hong Kong dollars, this is reference to the acquisition of 65 large and medium sized store is not more than 2 billion yuan.

Proposed store expansion and fund-raising 2.4 billion

Suning Appliance according to the latest

additional notice to be issued not more than 7300 million A shares to raise more than 2.4 billion yuan of funds used to accelerate the development of chain store, plans to build 250 within 18 months stores. This rate, even if the acquisition of large and medium unsuccessful Suning to open 65 stores will not exceed 5 months.

Sun people that buy the same industry for the home appliance chain enterprises, there are two benefits, one can save time and cost in the short term to achieve economies of scale; Second, gentle ways to eliminate opponents. However, there are negative aspects of the acquisition, which increased the cost of internal integration, integration may well drag on development of the company but will.

Allegedly Dazhong Electronics in Shanxi, Nanning, Chongqing and other places, stores began to suspend business for rectification, and Suning aims to merge. Sun Weimin, said this far, Suning and Dazhong Electronics did not sign any binding legal document, so Yongle and Dazhong arbitration result is not much affected Suning, Suning more willing to take the "passive" measures to carry out acquisition. Yesterday (April 24, 2007) medium and large areas that still have not announced the exact time to be out of arbitration with the Wing-lok, the current during negotiations to settle the issue.

Click to view: Pan, Betty Sun endorsement Suning feature live

Su Ning Of The Large And Medium Financial Assessment Will Not Be 3.0 Billion Acquisition

By: erenber

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