Bai Hua Cun Company Limited Private Placement:Large Shareholders Occupy Or Support

In recent years, with the rapid development, China’s securities market and the enterprise financing is more and more various, together with the measures for the administration of the issuance of listed company implementation. Under the background of the two themes, Private Placement became the focus on China’s securities market, and gradually developed to be the important way of refinance for companies.Compared with the traditional way of refinancing, Private Placement has some advantages, such as: the process simplified, lower the cost, reduce the related transactions, low disclosure requirements. However,the company always has the controlling shareholder in structure of listed companies in China, controlling shareholders involved in Private Placement has attacked our attention. This artical divided into two aspects,one is theory analysis and the other is case analysis. Theoretical analysis section includes agency Theory, Asymmetric Information theory, large shareholders support and large shareholders occupy and so on, that made theoretical guidance for the following case analysis. Case analysis part includes are as follows: first, the Bai Hua Cun enterprise general solution, operating conditions and Private Placement process. Secondly, analyzing the large shareholder of Bai Hua Cun and their behavior., mainly divided into two aspects. One is Bai Hua Cun’s Private Placement and their support. The other Bai Hua Cun Private Placement and their occupy. Finally, according to analysis the case of the Bai Hua Cun, then come up with several suggestions.Through the above analysis, this article analysis from the Bai Hua Cun big shareholders occupy and Bai Hua Cun big shareholders support two aspects respectively. First of all, in the aspect of Bai Hua Cun consider large shareholders occupy the company, found that:(1) the Bai Hua Cun large shareholders chose their favourable price tradeing, which makes large shareholders with limited assets exchange more Bai Hua Cun asset, occupy the interests of the company.(2) The asset injection, through quality and their market prospect two aspects analysis found that Yu Xin coal, and Natural Products quality are poor, belong to the inferior assets.Finally, based on the above analysis, the paper come up with policy Suggestions as follows:(1)Strengthen the quality evaluation of enterprise assets injection, ensure the quality of injection assets.(2)Perfect the enterprise purchase pricing system, set up barriers that the large shareholders through pricing way to occupy company interests.(3) Improve the multidimensional disclosure of relevant information.Inadequate disclosure of information is one of the important reason lead to information asymmetry,multi-azimuth information disclosure is good for investor make right decision and inhibit the large shareholders occupy.