Insights from the mixed-ownership reform of Changjiang Ecology and Environmental Protection Group
Published Time:
2021-01-04
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It is worth noting that after this mixed ownership reform, although the Yangtze River Ecological Environmental Group will become the largest shareholder of Zhongchi Holdings with a 24.61% stake, it will not become the company's actual controller. In other words, Zhongchi Holdings will become a company without an actual controller.
This reveals the recognition and trust between the parties to the transaction.
In recent years, there have been numerous cases in the environmental protection industry of private enterprises being acquired by state-owned enterprises, with some private environmental protection enterprises' actual controllers becoming various levels of SASACs, and a number of well-known private environmental protection entrepreneurs disappearing from the public eye, which has caused some private entrepreneurs in the industry to worry about the "state advancing and private retreating".
Some "bystander" private entrepreneurs have also expressed envy of the entry of state-owned capital during industry exchanges, but have also expressed concerns about the introduction of state-owned enterprise management systems after the mixed-ownership reform, fearing that they will be "managed to death." Indeed, in the market, there are many cases of private enterprises losing their market vitality after being acquired by state-owned assets due to major adjustments in their management teams and the inability of the original personnel to adapt to the newly introduced state-owned enterprise management system.
Does the entry of state-owned capital and mixed-ownership reform necessarily mean a major adjustment of the original private enterprise management team, does it mean that the private enterprise management team will encounter the strict management system of state-owned enterprises and thus lose market vitality?
It seems that the Yangtze River Ecological Environmental Group may provide a different answer.
Since its establishment in 2018, the Yangtze River Ecological Environmental Group has been "buying, buying, buying" in the capital market. Although it has been "buying, buying, buying" in the capital market, only the information obtained from public channels involves a total amount exceeding 10 billion yuan, but overall, it mainly focuses on financial investment. This time, it has entered Zhongchi Holdings with a stake of 24.61%, far exceeding its previous holdings.
Signs indicate that this investment is an industrial investment, and the Yangtze River Ecological Environmental Group did not make "control" a necessary condition.
In 2019, SASAC issued the "Implementation Opinions on Accelerating the Transformation of State-owned Asset Supervision Functions with the Focus on Managing Capital," which focuses on classified authorization and empowerment to fully stimulate the vitality of micro-subjects.
This also means that Zhongchi Holdings does not need to make major adjustments to its management team and management system during the execution of this series of transactions. It can enjoy the greatly enhanced financial strength, reduced financing costs, broader and smoother operating platform, and other benefits brought by the capital injection from the Yangtze River Ecological Environmental Group, while still maintaining the company's original forward-looking and stable operating style and good market competitiveness, which is conducive to building Zhongchi Holdings into a leading environmental technology enterprise.
For the Yangtze River Ecological Environmental Group, Zhongchi Holdings, which has both technological expertise and operational capabilities and can undertake regional integrated environmental service projects, is an ideal partner. Introducing it into the large platform of the Yangtze River Ecological Environmental Group and mainly managing capital in management and fully empowering it in business will better serve the great protection of the Yangtze River ecosystem and fulfill the mission entrusted to the Group by the state.
As one of the national teams designated by the state to specialize in the ecological environment industry, the investment and merger and acquisition strategy of the Yangtze River Ecological Environmental Group will largely play a leading and demonstration effect in the industry. The entry of the Yangtze River Ecological Environmental Group into Zhongchi Holdings will also bring some new atmosphere to the water treatment sector of the environmental protection industry, which is undervalued.
