China'S Privatization Of Postponed New World Stores Failed To Escape Defeat

According to the world clothing shoes and hats net, it has been postponed repeatedly.

China's privatization ended in failure.

New World Department Store China Limited (hereinafter referred to as "New World Department Store China") issued a notice in the evening of August 29th. On the deadline of final announcement, the offeror and its co operative persons held a total of 75.67% shares, failing to reach 90%, and the offer failed.

New world development believes that owning new world department stores, China as a wholly-owned Affiliated Companies, will enable the company to draw up a more comprehensive investment strategy from the whole and allow companies to deploy resources in a more flexible way between the mainland and Hongkong in the right opportunity.

The privatization failed, and the adjustment situation faced by new world department store in China may be even more difficult. The adjustment that has already been shown is somewhat inadequate compared with the overall layout of the mainland. However, referring to the case of China's privatization of the new world before the development of the new world, it is not ruled out that the new world department store will adopt other delisting methods.

Delays in privatization still fail

At the appointed time after the extension, the privatization of the new world department store owner failed to realize the holding of 90% New World Department Store shares, and privatization failed.

In the former privatization announcement, according to the relevant provisions, the acceptance of shares reached 90%, and the mandatory takeover and revocation of the new world department store's listing status in China would be mandatory.

In June this year, the new world department store issued a joint announcement with its parent company's new world development in the evening of June 6th after a short suspension. The new world development will offer a cash offer through the Swiss bank Hongkong branch to acquire all the issued shares of the new world department store Limited, and make the proposal privatization.

According to the announcement, Swiss bank Hongkong branch will offer voluntary conditional cash offer on behalf of the offeror to acquire all the offer shares.

The offer price per share is HK $2, and the offer will be made to all shareholders of the New World Department (except the offeror).

Since then, privatization has been postponed for two times in July 18th and August 1st.

For the reasons for the failure of privatization, the new world department store did not respond to reporters' interviews, but in many industry circles, the low price is one of the main reasons.

Although the price of China's privatization of the new world department store is about HK $2 per share, and the suspension of the privatization announcement, the closing price of new world department store is HK $1.33 per share.

But compared with the previous market value of new world department store, this price is still not ideal.

Hongkong media has given a set of data. The level of cash holding and time deposits in New World department store has been reduced from 4 billion 153 million yuan in 2011 to 1 billion 877 million yuan at the end of last year, and its market value has shrunk.

In addition, some analysts pointed out that "the privatization of the new world is more complicated, which involves many factors such as the situation in the department store, the differences within the family, the opposition of minority shareholders" and so on.

In the new world development, the low flux of new world department stores in China has also led to the fact that the existing platform is no longer enough to serve as a source of funding for the new world department store's China business and development.

After privatization, the new world department store will benefit from the flexibility of non-listed company, including obtaining additional development capital from its parent company instead of facing the risk of market volatility, and avoiding the pressure of short-term and short-term performance, and arranging strategic decisions from the long-term interests.

Adjustment measures are utterly inadequate

Prior to the announcement of privatization information, the new world development indicated that owning new world department store, China as a wholly-owned Affiliated Companies, will enable the company to draw up a more comprehensive investment strategy from the whole and allow the company to deploy resources in a more flexible way between the mainland and Hongkong in the right opportunity.

In addition, privatization will also eliminate administrative, compliance and other listing related costs and expenses.

Now privatization fails, the reporter inquired about the reasons for the failure of the privatization of new world department store and the strategic planning or adjustment after privatization failed to ask the New World Department Store China, but as of press time, it did not receive the response from the new world department store in China.

It is worth noting that the development of the department store industry in the mainland is not suitable for the new world department store in China. The new world department store has also made clear in its announcement that the mainland's retail market is facing unprecedented challenges in recent years, especially the rapid development of the e-commerce platform plus the emergence of large shopping malls, which significantly changed the Chinese consumers.

Habits, competition intensifies, the volume of traditional retail stores, such as department stores, has been greatly reduced.

As for the new world department store, China has now made public efforts to see that the adjustment is still limited to a small scale, compared to the overall downturn in the environment and the weight of the new world department store in China.

According to the mid-term report of New World Department China 2016-2017 fiscal year, the new world department store admits that in recent years, it has continued to enhance the proportion of proprietary sales by developing its own brand.

In the 2016-2017 fiscal year, the proportion of self merchandise sales in New World Department Stores accounted for 30.9% of the revenue.

By the end of 2016, the total number of stores in the new world department store of China LOL original life concept store has grown to 11, and the internal management of the brand has been divided into the silver label shop, the gold label store or the black label store.

N+ natural baking has also entered two stores in Shanghai.

In the annual report, the new world department store also said it would continue to adjust the product structure of n+ natural baking, increase the new product line and consider upgrading to n+ life hall, with abundant elements to create a cross border collection store business pattern.

Not long ago, the new world department store was also launched in Wujiaochang, Paris, Shanghai.

Self brand new theory.

Although some attempts have been made for a long time, there is not much expression of this part in the earnings report, which is far from the volume of the new world department store in China.

According to the 2016/2017 interim report of new world department store, by the end of last year, the new world department store had 37 own stores and 5 management shops in the mainland, but the attempt was mostly in single or multiple stores inside the shopping mall.

New world department store continues to bear pressure

In fact, from the expansion, we can see the glimpse of the new world department store's struggles in recent years.

New world department store has been regarded as the vane of mainland department store marketing because of its activities such as "60 hours without closing". The new world department store in Chongwen was once one of the famous department stores in the capital. Now, the new world department store in the capital of the famous shopping place in Beijing has tried to finish the new world women's goods in Beijing. In the early years, there was news that the K11 of Chongwenmen business circle still had no definite news until now.

In terms of profit, according to the latest interim report of 2016/2017, which was recently published by new world department store, although the net profit has increased, self sales are also heading for the direction of new world department store in China, but the revenue is declining compared with the same period last year.

Apart from internal family differences, Guo Zengli, director of the China Federation of purchasing industry information center, told reporters that the status of listed companies continues to be maintained. There is great pressure on all aspects of supervision and return expectations for the development of new world department store in China.

Only after privatization can the family get more autonomy and inject more resources and funds.

However, some insiders pointed out that privatization and failure of the listed companies in the way of privatization were not the first time for the development of the new world of the parent company. Public information showed that the new world development tried to privatize the new world China, but finally, because of the number of shareholders voting less than the number of opponents, the privatization proposal ended in failure, and after the failure of privatization, the new world development directly realized the delisting of the new world in the form of a comprehensive acquisition.

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