Case Analysis Of China Gas Anti-takeover ENN Energy Holdings Limited

Public company anti-takeover is also called takeover defense. Anti-takeover which usually happens in hostile merger, means that the anti-takeover measures are adopted by company targeted to resist or frustrate buyout offers. The essence of anti-takeover is to control the ownership of a company and to share the target company’s profit. The Share Splitting Reform has brought about considerable changes in the M&A environment of the listed companies. Mergers and acquisitions continue to innovate and diversify, for example, public auction, judicial decision and share custody all become possible. Acquisitions and anti-takeover are concomitant. Diversifying forms of acquisitions bring anti-takeover measures to mature, and the new anti-takeover measures will continue to respond to the emergence of new acquisition means.Based on a comprehensive analysis of domestic and foreign scholars in mergers and acquisitions motivation, corporate anti-takeover motivation and corporate anti-takeover strategies and other effects, this paper mainly analyzes the case of China Gas anti-takeover ENN Energy Limited. First, this article introduces background information of the main actors—China Gas, ENN Energy Limited and China Petrochemical, and the specific process of anti-takeover, which lay the foundation for the case analysis of anti-takeover. Secondly, with the acquisition motivation theory and anti-takeover motivation theory, depending on the background of participants, this paper analyzes the purpose of the takeover and anti-takeover. The reason that ENN implements anti-takeover are optimization of the business integration and strengthen of the market position and coverage. And the motivations of the anti-takeover are acquisition of higher price, high payment of the directors, the emotion of the founder and social responsibility. Then we analyze the four reasons for the successful anti-takeover synthesizing the entire process, the low given price by ENN, the anti-takeover measures taken by China Gas, delay of antitrust review and back of the founder. Lastly we get some case revelations from the corporate government, the building of anti-takeover strategies and the value of anti-takeover measures. We hope that this case study can provide some experience for how to avoid becoming the target of other companies and how to carry out strategies of anti-takeover.