Recently, the news that Ma Yun and Cai Chongxin pledged Alibaba shares has aroused widespread concern.
The two founders of Alibaba ranked 26th and 189th in the Forbes Global list of billionaires in 2021, with a value of US $48.4 billion and US $11.6 billion respectively. They are one of the partners with the least bad money. It would not have been possible if it had not been for a large investment. Such a big move.
At the moment when Suning Tesco is in dire straits, Jack Ma and Cai Chongxin choose to pledge shares in exchange for huge loans at this delicate node, making it hard not to imagine.
Zhang Jindong could not find the savior
For Suning Tesco, Ma Yun’s feelings can be described as mixed.
In August 2015, Alibaba made a high-profile investment in Suning Cloud Merchants before changing its name to Suning.com, and obtained the latter’s fixed increase of 1.86 billion shares at a price of about 28.3 billion yuan, with a shareholding ratio of 19.99%, which is second only to Zhang Jindong. The second largest shareholder. At that time, Jack Ma hoped that online and offline integration could reshape Ali. Unexpectedly, it became a nightmare, and this investment has been in a state of substantial loss for a long time.
After Suning Tesco was exposed to a tight funding chain in November last year, the heartbroken Ali has been standing by and letting Zhang Jindong toss on his own without any suspense. There are many icing on the cake and few people giving charcoal in the snow. Zhang Jindong’s self-help effect is limited.
After the Spring Festival of 2021, Zhang Jindong and Suning Appliance Group had planned to sell themselves and sell 20%-25% of Suning Tesco’s shares to introduce strategic investors. Shenzhen International Holdings Co., Ltd., a subsidiary of Shenzhen State-owned Assets, subsequently announced its intention to acquire 23% of Suning Tesco for 14.8 billion yuan. More than four months have passed, and there has been no substantial progress in this seemingly determined transaction.
As the saying goes, nights have many dreams. Every time the Shenzhen International Investment Corporation delays the conclusion of the transaction, the risk of failure will increase a lot. After all, according to the agreement, the relevant parties should sign the final agreement within 6 months after the framework agreement takes effect, otherwise it will automatically terminate. For Suning Tesco’s creditors, they also don’t have so much patience.
The annual report shows that in 2020, Suning.com’s net outflow of funds was 6.36 billion yuan. As of the end of that year, short-term loans and illiquid liabilities due within one year were 41.4 billion yuan. Many bonds must be repaid on the agreed date. Cash and cash equivalents are less than 11.6 billion yuan.
Throughout the first half of the year, Suning.com’s main gain in financing was 3.2 billion yuan. On June 2, Suning Appliance Group and Jiangsu New New Retail Innovation Fund signed the “Share Transfer Agreement”. The former intends to transfer 5.59% or 520 million Suning Tesco shares held by the former to the New New Retail Fund at a price of 3.2 billion yuan. , On June 9th, Suning.com announced the completion of the transfer of shares. The two parties completed the transaction in a flash within a week. If something goes wrong, there must be a demon. This transaction is not a purely market-oriented operation.
According to the Tianyancha APP, the New New Retail Fund was established on May 28 with a registered capital of 3.5 billion yuan. Regardless of the time of establishment or the registered capital, the New New Retail Fund is designed to acquire shares of Suning. The major shareholders are Jiangsu Agricultural Reclamation Group, Jiangsu Guoxin Group, Jiangsu Transportation Holdings, and Jiangsu High Investment Management Co., Ltd. The actual controller is the Jiangsu Provincial Government.
What is SZIC hesitating?
The fall of Suning Tesco is not in the interests of “Su Daqiang”.
Headquartered in Nanjing, Suning.com is not only a star listed company in Jiangsu Province and a banner in the Internet field, but also a large number of jobs. The annual report shows that as of December 31, 2020, Suning.com has 46,000 employees, and a large part of the jobs are in Jiangsu Province.
However, Jiangsu’s support is limited to helping Zhang near the East. In the equity transfer agreement, the New New Retail Fund specifically stipulated the repurchase clause. Zhang Jindong must pay the full repurchase price before April 1 next year. In order to protect his investment, the former also requires the latter to use the 1 billion he holds. Share pledge guarantee.
In contrast, Shenzhen International Investment Corporation is the real savior of Suning.com. This transaction has been delayed, perhaps because the acquirer believes that there are new problems that affect the progress of the transaction. For the acquisition, SZITIC has set three prerequisites. In addition to the necessary internal and external approval procedures, it also includes that there are no major defects in the due diligence results. Before the completion of the transaction, Suning.com’s industry, business, production and operation must not be significant Adverse changes.
Not to mention whether the actual situation of Suning Tesco is worse than what we have seen from the outside, the company’s position in the capital market is also declining at a speed visible to the naked eye. When the framework agreement was signed, Suning Tesco’s stock price was still around 7 yuan/share. Therefore, the agreed transaction price of both parties was 6.92 yuan/share, which has now fallen to 5.59 yuan. With a loss of nearly 20%, it is easy to raise doubts about the suspected loss of state-owned assets. In fact, the price of new retail funds entering Suning.com is 6.12 yuan per share.
An industry insider believes that in the past few months, Suning.com’s rapid turnaround in the capital market can be regarded as the agreed prerequisites no longer exist. Earlier news said that the due diligence of SZIT has been completely suspended. In this case, in order to continue to promote this equity cooperation, in addition to Zhang Jindong’s need to make concessions on the share transfer price, the second shareholder Ali will continue to watch the fire from the shore, and must take more sincere actions to rescue Suning Tesco.
Of course, Jack Ma can’t help but shoot.
When will Jack Ma take the shot?
According to the closing price of the most recent trading day, Suning Tesco’s share price has evaporated 76% from its peak of 23.54 yuan, leaving many investors crying. Ali is the most injured. The 1.86 billion Suning Tesco shares that Ali bought at a high of 15.23 yuan per share have not sold a single share in the past eight years, which resulted in a floating book loss of up to 18 billion yuan.
If Suning Tesco collapses, in addition to the current 10 billion stocks of Alibaba, the entire equity of Suning Holding Group and the 65% equity of Suning Real Estate that were newly pledged six months ago will also become waste paper.
Whether Suning.com can reverse the decline is related to Ali’s interests. This is also the root cause of rumors that Ali will take over Suning.com from time to time in the market, but the scene that everyone expected has never happened. Zi Finance believes that Ali’s silence has its own difficulties. This e-commerce giant has already planted on Suning Tesco once, and it has been planted miserably. If you bet again, it is easy to cause bad associations from the outside world, and more importantly. Yes, in the context of Suning’s danger, Ali’s direct move will put a lot of pressure on the stock price of listed companies.
This work can only be done by Jack Ma and Cai Chongxin. The two pledged Alibaba stock to obtain a huge loan with a high probability to prepare for the capital injection into Suning.com. As the founders of Ali, Ma Yun and Cai Chongxin came forward, which can produce the same effect as Ali’s endorsement, promote the business synergy between Ali and Suning. effect. If the progress is good, Ali does not rule out the possibility of taking the opportunity to implement mergers and acquisitions of Suning.
Given that Suning.com’s current situation is not optimistic, we expect that Jack Ma, Cai Chongxin and Shenzhen International Investment Corporation will jointly take over the company no later than August 24, which is the deadline set by the Shenzhen International Investment Framework Agreement.