(Longhuwan:longhoo.net) After suspending for 3 trading days, Nanjing Cenbest（600682）announced last night Sanpower Group would acquire 17% shares of Nanjing Cenbest held by Golden Eager Group (totally 60916150 shares) and become the first major shareholder of Nanjing Xinbai; the transfer price would be 90% of he average share price of the 20 trading days before May 27, i.e.: RMB9.87/share. After completing stock right transfer, the State-owned Assets Supervision and Administration Commission of Nanjing Municipal Government would have 15.47% shares as the secondary major shareholder and Golden Eager Group would reduce the share percentage from 29.98% to 12.98% and become the third major shareholder.  

 

Yuan Yafei becomes the actual controller

　　Headquartered in Nanjing, Sanpower Group is one of the largest diversified private enterprise of Jiangsu Province, but also the holding shareholder of the listed company of Hiteker. The 2010 annual report shows Sanpower Group has 116939572 shares of Hiteker, accounting for 20.65% of the total share capitals; Yuan Yafei holds 55% shares of Sanpower Group and thence becomes the actual controller. After transferring the stock right, the actual controller of Cenbest would be changed from Wang Heng, the president of Golden Eager Group into Yuan Yafei. Before which Golden Eager held Cenbest through 4 affiliated companies, i.e.: Nanjing Cenbest Investment, Shanghai Jinxin Industry, Nanjing Huamei Lianhe Marketing Management Co., Ltd. and Golden Eager Group International.

　　It is known by the journalist the transfer of the stock right happened this time was mainly because of the competition between Golden Eager Group and Nanjing Cenbest; Golden Eager Group established a general merchandise platform, i.e.: Golden Eager Retail Group listed in Hongkong, which competes with Nanjing Cenbest in the business district in Xinjiekou, Nanjing; for this reason, Golden Eager quitted the actual controller.

 

Government supports right stock transfer

　　In view of the information disclosed by Hiteker, Sanpower Group was established on April 28, 1995 and conducts business in multiple fields. Among the top 500 Chinese Private Enterprises 2010 posted by All-China Federation of Industry and Commerce, Sanpower ranked top 13. Sanpower is the parent company of Hisap, the well-known IT chain enterprise in China. The information shows Sanpower Group, besides the IT chain operations, involves in information service, information manufacturing, financial investment and other fields. By the year of 2010, the total assets of Sanpower Group exceeded RMB20.0 billion and the annual sales income broke through the amount of RMB35.0 billion).

　　According to the information, “Sanpower holds the affirmative attitude for the future growth potential of the general merchandise retail industry and the top-quality brand of ‘Nanjing Xinjiekou General Merchandise’, and thence acquires the shares held by Golden Eager. Meanwhile, Sanpower has rich experiences in business management and successful case to regroup Hiteker, a listed company with certain state-owned nature”. It is reported that the local government offered huge support to Sanpower to control Nanjing Cenbest.

 

Top management of Cenbest is unchanged

　　It is reported Sanpower shall focus on the strategic investment after holding Nanjing Cenbest, but the operation management shall be done by relying on the existing management team of Nanjing Cenbest.

　　An analysis studying the retail industry told the journalist, "In the part 5~6 years, Cenbest did not expand towards other areas due to the constraint of inter-trader competition, so the business scale did not expand either. However this year is a turning point of Cenbest. After Sanpower becomes the shareholder, Sanpower Group’s chain experience shall make Cenbest benefited. With the successful experience of Sanpower Group in business expansion, informatisation, logistics, e-Business and other modern service management, Cenbest shall certainly expedite to develop; therefore Sanpower Group shall bring a 'multiple-win' transaction”. Before suspending, the share price of Cenbestwas RMB11.25; “but the net assets of Cenbest would be RMB20.0/share”, estimated and evaluated by the analyzer. 

 

□ Journalist: Shi Liang

 

Source: Jinling Evening Paper    Editor: Xue Shan