Research On Listing And The Restructuring Strategy Of Shandong Energy Group Co.,Ltd.

Shandong Energy Group Co.，Ltd. is a state-owned provincial-directed companyapproved by the Shandong provincial government and comprised by Xinwen Mining Group,Zaozhuang Mining Group, Zibo Mining Group, Feicheng Mining Group, Linyi Mining Group,Longkou Mining Group after the reorganization. Shandong Energy Group Co.，Ltd. hasdeveloped into a vast integrated energy enetrprise with main business coordinately expandedinto coal production, electricity, coal chemical industry, equipment manufacturing, logistics,trade, healthcare and other industries. Shandong Energy Group is the largest and mostproiftable Province-direted enterprise as well as one of the Fortune500companies. Practiceof the central and local state-owned large-scale coal enterprises using listed company as acapital operation platform to promote long-term development has proven that restructuringand listing would be an important measure which encourages enterprises to break through thetraditional mode and to achieve leapfrog development. But Shandong Energy Group lackslisted main-business companies as capital operation platform. Therefore, accelerating therestructuring and listing is the inevitable choice for the strategic objectives of ShandongEnergy Group, which is to build an international, modern large-scale energy Group. Researchabout restructuring and listing strategy plays a decisive role for the promotion of sustained,healthy and rapid development of Shandong Energy Group.Based on the current status and future development goals of Shandong Energy Group,this essay conducted a systematic study on restructuring and listing of large state-owned coalenetrprises. It learns from the relevant experiences and takes into consideration the regulatorypolicies. The essay proposes the mode and path for restructuring and listing of in line with theactual situation of Shandong Energy Group, that is, to restructure the main business and assetsof Shandong Energy Group with upstream and downstream association, high industrialrelevance and maturity, like coal chemical industry, equipment manufacturing, electricity,modern logistics, and to list them in the domestic A-share market and the Hong Kong H-sharemarket by the initial public offering (IPO), so as to form a listed-company group ofcoal-based industry of Shandong Energy Group.The overall restructuring and listing strategy of the main coal industry and its relatedindustries of Shandong Energy Group presented in this essay has addressed the specialproblems of large state-owned coal enterprises and individual problems that Shandong EnergyGroup will encounter in the listing process: the choice of the listed assets should be in linewith the need of coal enterprises and the ifnancial attractiveness for investors, to maximizethe value of the company by the ampliifcation effect of the capital market; comprehensiveconsideration of degree of relevance, mutual dependence, synergies effect for the futuredevelopment for each industry sector, so as to ensure that the restructuring are conducive togroup strategy implementation and the long-term survival and development of all sectors; to achieve common benign development of the listed assets and the surviving part; to keep thelisted assets and operation mode in line with regulatory requirements, be free of legal defectsand obstacles; to coordinately plan the overall ownership structure of the company in order tomaintain absolute control of the state-owned shareholders and good follow-up ifnancingcapacity; restructuring and listing should be consistent with the policy-oriented considerationin the province, to achieve enough influence in industry and capital markets, so as to createconditions for policy support.