Driven by the huge wheel of SOE reform, another industry giant has expanded its strength through the capital market. Nearly half a year after the suspension, Wanhua chemical major asset restructuring plan finally exposed.

Absorbing controlling shareholders
In the evening of May 9th, Wanhua chemical disclosed a major asset reorganization plan. The company intends to adopt the way of issuing shares to absorb and merge the controlling shareholder Wanhua chemical industry.

The value of the 100% equity capital account of Wanhua chemical is 2 billion 111 million yuan, the estimated value is 52 billion 212 million yuan, and the value added rate is estimated to be nearly 24 times. The company plans to share 1 billion 716 million shares of new shares, and the issue price per share is 31.93 yuan per share.
The main business of Wanhua chemistry:
For the production and sales of chemical raw materials and chemicals, the company covers the three major parts of the polyurethane industry, petrochemical industry, fine chemicals and new materials industry, which are the second largest MDI producers in the world.
It needs to be pointed out:
BC, a subsidiary of Wanhua chemical company, has an annual capacity of 300 thousand tons of MDI, and before this transaction, Wanhua has an annual output of 1 million 800 thousand tons of MDI capacity.
Through the absorption of Wanhua chemical industry, Wanhua chemical will have a total of 2 million 100 thousand tons of MDI capacity, beyond BASF's annual output of 1 million 810 thousand tons of MDI capacity, leaping to the world's largest MDI producer (by the capacity meter).
Become one of the world's first
In addition to the purpose of the reform of state-owned enterprises, this major asset reorganization also aims to make the listed companies bigger and stronger.

Wanhua chemical said that through the restructuring of listed companies, three purposes will be achieved:
Is a positive response to the national call, the layout of &ldquo Belt and Road Initiative; ” business entity.
The two is through the acquisition of the world's eighth largest MDI producer Hungary BC, Wanhua chemical will surpass BASF to become the world's largest MDI manufacturer (capacity calculation).
Three, after the completion of this transaction, the listed companies will completely solve the potential competition between the BC company and the controlling shareholders, which is an important measure for the controlling shareholders to fulfill the commitment of the securities market.
Wanhua Chemistry continues to move forward
Wanhua chemical analysis said that in the &ldquo, the oligarch monopolized the ” in the industry, there were 4 major competitors for the Wanhua chemistry, BASF (BASF), Covestro, DuPont DuPont (DowDuPont) and Huntsman (Huntsman).

The total capacity of the Wan Hua Chemical (excluding BC company) and the 4 companies mentioned above accounts for about 80% of the global total capacity, of which Wanhua chemical has an annual capacity of 1 million 800 thousand tons, second only to 1 million 810 thousand tons of BASF and the second largest in the world.
However, over the past decade, 4 major competitors have realized the production and operation distribution around the world, and Wanhua chemistry currently only has production devices in China. In the global market competition of the polyurethane industry, the risk of too much local capacity in Asia has been taken.
After the completion of the overall listing, BC will become a listed company subsidiary and will be integrated into the overall strategic layout of the listed company. The listed company will become the largest MDI supplier in the world and will realize the layout of the three major markets in Asia, Europe and the Americas.
Wanhua chemical and BC company are world-renowned chemical enterprises, both have strong core technology accumulation and procurement sales channel coverage.
Before the whole listing, BC company, as a subsidiary of Wanhua chemical controlling shareholder, is restricted by the independence of the listed company and the restriction of the competition of the same industry. The listed companies can only influence the management ability and enterprise culture of BC company by the way of trustee management, and there are strict limits on the sharing of resources, technology, market, information and so on. This is not conducive to the implementation of the overall strategy of listed companies, but also shackles the speed and scale of BC development.
After the completion of the overall listing, the listed companies will be able to form a comprehensive resource support and share with BC company, and the scale effect and synergy effect will be further highlighted.
While the scale is expanding rapidly, the MDI industry of Wanhua chemical industry is on the rise.
Materials show that domestic MDI is mainly used in the refrigerator area, accounting for 45%, far higher than the global level of 12% in the fridge.
Because of the need for consumption upgrading, the growth of refrigerators continues. With the large-scale development of fresh distribution industry, the demand for MDI in cold chain transportation will also increase.
Thanks to strict environmental regulation, the price of chemicals has increased considerably. The 2017 annual report released by the company showed that the operating income reached 53 billion 123 million yuan during the period, an increase of 76.49% over the same period, and a net profit of 11 billion 135 million yuan, an increase of 202.62% over the same period last year.
Source: the securities times, the margin of the petrifaction