Provincial new and old kinetic energy conversion high-end chemical industry parent fund participates in mergers and acquisitions of listed companies
At the beginning of this year, Riko Chemical, a listed company located in Changle County, Weifang City, launched a 140000 ton per year polymethyl methacrylate (PMMA) project at Dongying Port. According to Liu Xiaoyang, Director of the R&D Center of Nippon Paint, after the project is put into operation, it will effectively alleviate the current situation of insufficient production capacity of high-end optical PMMA in China.
Founded in 2003, Niche Chemical holds nearly 40% of the domestic market share in plastic impact modifiers and other products. However, in recent years, market competition has intensified, and in order to seek long-term development, companies need to connect upstream and downstream industrial chains and further expand their product chains. The annual production of 140000 tons of PMMA products project is one of the paths for the enterprise to develop downstream and high-end.
However, in the face of such a promising project, a year ago, Niche Chemical was "wavering" between investing and not investing. During this period, the pace of the enterprise slowed down due to factors such as the rise in raw material prices and the overall decline in industry profits.
In the first half of last year, the Shandong New and Old Kinetic Energy Conversion High end Chemical Industry Mother Fund was jointly initiated and established by Shandong Private Joint Investment Holding Co., Ltd. (referred to as "Lu Min Investment") and Shandong New Kinetic Energy Fund Management Co., Ltd., with a focus on investing in the high-end chemical industry. Among them, the parent fund has a scale of 5 billion yuan, and the guiding fund has contributed 1 billion yuan. The fund management institution is Shandong Minkong Equity Investment Management Co., Ltd.
After the establishment of the parent fund, we have been searching for projects that meet the requirements for investment. At this time, the promising development prospects of the new project of Riko Chemical have attracted our attention. As a listed company in the fine chemical industry, Riko Chemical has an excellent management team, which is in line with the investment purpose of the high-end chemical industry parent fund. "On July 3rd, Yue Jixia, the financial director of Lu Mintou, who was on a business trip to Riko Chemical, told reporters. At the same time, Wanda Holdings and Dongming Petrochemical, the two major shareholders of Lu Min Investment, are both leading enterprises in the petrochemical industry in the province. They have a supply relationship with Nippon Science and Technology Co., Ltd., and have a great synergy in the industry, which is conducive to Nippon Science and Technology Co., Ltd.'s upstream and downstream integration.
According to Yue Jixia, the Shandong New and Old Kinetic Energy Conversion High end Chemical Industry Mother Fund has set up a sub fund specifically for the acquisition of Nicco Chemical, and the guiding fund has invested 56 million yuan to drive the entire acquisition value of 600 million yuan. In February of this year, the controlling shareholder of Nicco Chemical was changed to Jinhu Investment, a subsidiary of Lu Min Investment. "This also provides a replicable and replicable path for the mother fund to invest in other projects in the future
The reporter learned that after being controlled by Lu Min Tou, the two major shareholders of Nippon Chemical have embarked on a long-term cooperation development model. Lu Min Tou and the original team of the company have leveraged their respective advantages to accelerate the implementation of the company's development strategy. The daily operation of the company has not been affected by the change of controlling shareholders. Previously, the company focused on production and sales, and the internal structure of the company was not reasonable, which to some extent affected the operation of the enterprise. "said Zhang Jianwei, the financial manager of Rike Chemical. The new controlling shareholders have introduced their management resources and improved the company's management level through participating in business analysis meetings, sorting out the internal structure of the company, and other means.
On the other hand, in the view of Nicco Chemical, the addition of new shareholders is also beneficial for Nicco Chemical to leverage the capital market and achieve the integration of production and finance. In the new board of directors of Niche Chemical, experienced experts in capital operations have been added, and the company's future capital operations are expected to receive strong support, which is conducive to improving the company's financing efficiency, reducing financing costs, and accelerating the company's industrial expansion.
今年一季度，日科化学净利润较去年同期增长了4倍多。“在我们看来，未来不是企业与企业竞争，而是产品链与产业链竞争。比如，14万吨/年PMMA项目建在东营港，就是为了降低运输半径，便于利用公司关联方上游供应商的协同作用，共同打造难以模仿的核心优势。”
Information source: Shandong Provincial Government website
Editor He Yang of this website/Organizing
