On March 14th, Little Swan distributed 10 yuan and 40 yuan red envelopes, and distributed a total of 2.530 billion yuan.
This is the unprecedented big hand of Little Swan.DividendIt will also be the company’s last dividend. Why did Little Swan choose to make a big dividend before the merger with Midea Group?
The company's unprecedented big dividends
Little Swan A after the March 14thannouncementIt is said that it is planned to use the company's total share capital of 632 million shares at the end of 2018 as the base, and every 10 shares will be distributed at 40 yuan, and a total of 2.530 billion yuan will be distributed.
On the evening of March 12, Midea Group issued 342 million shares to absorb the merger of Little Swan just obtained the approval of the CSRC.
It is worth noting that Little Swan has launched this year's 2018 profit distribution plan, not an annual profit distribution plan.
Why did Little Swan choose to make big dividends at this point in time?
Some insiders pointed out that it is because it is to be merged into the US group.
On November 22, 2018, Midea Group proposed that before the formalization of the merger and the approval of the CSRC, Little Swan made another dividend: 40 yuan for every 10 shares. This faction ratio is the highest in the history of Little Swan's dividends, accounting for 85% of the undistributed profits of the Little Swan parent company at the end of the third quarter of 2018. The total dividend will reach 2.53 billion yuan, close to the 20-year dividend in the history of Little Swan. with.
MergerThe analysis of the research institution "M&A Wang", the Little Swan's big dividends, and the success rate of absorbing and merging the Little Swan may be an important reason, but the prerequisite is that the absorption merger plan is passed.
"M&A Wang" explained that Midea Group as Little Swan HoldingsshareholderCan't participateShareholders' meetingIf the minority shareholders of Little Swan believe that the merger plan is unfavourable to them, it is very likely that the transaction will not be approved by the shareholders' meeting.
After throwing out the “bait” of 2.53 billion cash dividends, the small and medium-sized shareholders of Little Swan can still get a large dividend after the merger and approval by the China Securities Regulatory Commission. The enthusiasm of the minority shareholders to support the trading plan will be improved, and the plan will be approved by the shareholders. The possibility of approval is even greater.
It turns out that at the second extraordinary shareholders meeting of 2018 held by Little Swan on December 21, 2018, small and medium investors voted for 97.62%.
Midea Group received 1.3 billion yuan
Midea Group will be the biggest winner of this dividend.
As the largest shareholder, Midea Group, which directly and indirectly holds 52.67% of the shares of Little Swan, will receive a dividend of approximately 1.333 billion yuan.
Little Swan is recognized as a "cash cow". After the listing, it has been 10 yuan for 10 shares and 6 yuan for a large proportion of dividends. Since its listing in 1997, it has accumulated 14 dividends, with a total dividend of 2.843 billion yuan.
According to the relevant regulations, if the shareholders of Midea Group and Little Swan disagree with this merger, they can sell the shares to Midea Group, and Midea Group must acquire these shares in cash, that is, the cash option in the merger.
According to the US Group's absorption of the merger of Little Swan's trading report, Midea Group and Little Swan's shareholders use the cash option to sell shares to Midea Group, which is equivalent to a maximum of 311 million yuan in cash, which is only a fraction of the dividends earned by Midea Group.
208 companies release dividend plans
Entering the 2018 annual report season, the enthusiasm of listed companies for cash dividends continued to rise, with 10 factions of 40 yuan and 10 cases of 17 yuan.
The data shows that as of March 14, a total of 208 companies in the two cities have issued cash dividend plans, which are close to 64.1 billion yuan.
From the perspective of dividend payout, among the 208 companies, there are 63 of 3 yuan and above for every 10 shares, accounting for 30%. Among them, Huabao Co., Ltd. and Fangda Special Steel have thrown out a generous dividend plan of 10 yuan or more for every 10 shares.
Huabao Co., Ltd. announced the 2018 annual profit distribution plan on the evening of March 12: It plans to send 10 yuan for 10 yuan, and a total of 2.46 billion yuan (including tax) will be delivered. Lanzhou Minbai plans to pay 16 yuan for every 10 shares, and the accumulated dividends reach 1.253 billion yuan.
The high proportion of dividend-paying companies has been sought after by the market. The stock price of Huabao has risen for two consecutive days, with a cumulative increase of 19%.
It is worth noting that after the implementation of the dividends of Huabao, the major shareholder Huaying International will be close to 2 billion yuan, becoming the biggest beneficiary of this dividend.
In this regard, analysts pointed out that it is necessary to prevent "divine dividends" and prevent large shareholders of listed companies from taking the opportunity to cash out, or to use the dividend machine to cover the profit reduction. Some listed companies' net profit dropped significantly, and they still chose high dividends, which is not conducive to the development of listed companies to a certain extent.
(Article source: China Securities Journal)