Research On Acquisition Payment Method Of Bluefocus Corp.&Tibet Bojie Corp.

As our country's economy system has reformed from planned economy to market economy,the reform of shareholder structure was deepened and carried out throughout the country,the capital market is becoming mature and perfect gradually,our country also set off a wave of acquisition.Along with the continuous expansion of transaction scale,single payment methods can't meet the current needs any more,the development of M&A market will be at a lower pace unless the payment methods are innovated.The M&A related laws and regulations such as “On the Promotion of Corporation Mergers and Acquisitions” issued by State Council in 2010 and “The Management of Major Asset Restructuring of Listing Corporation” issued by China Securities Regulatory Commission in 2011 encourage enterprises to improve industrial integration and adjustment of industrial structure through merger and acquisition,at the same time,they also encourage enterprises to use multiple payment methods.Selecting payment methods is a key step of M&A process.Different methods will affect asset,shareholder structure and other aspects of the two sides in M&A in varying degrees,this not only affects the implementation of acquisition and whether the merger will be completed successfully,but also influence the integration effect indirectly,enterprises and regulators therefore pay more and more attention to that.But domestic and foreign experts and scholars do more research on theory and empirical analysis than on M&A of listing corporation in China,and the M&A is monitored strictly by regulators,under the constraints of policies,how to select an appropriate payment method to reduce M&A cost,risk and improve performance becomes more and more important for listing companies.This paper combines theoretical research and case studies.First of all,read relative literatures and make summary on research findings found by scholars and status of payment methods,and the factors that will influence enterprises in selecting payment methods.This paper proposes that the process of choosing payment method actually is a comprehensive consideration of various factors,after analysing the cost,risk and performance of different payment methods,then enterprises make decisions.Second of all,this paper discusses the acquisition of Blue Focus and Tibet Bojie,introduces company profile and the payment method is mixed payment,on this basis,analyses the main reasons why Blue Focus chooses that payment method are the low concentration of large shareholders,the large-scale transaction,strong financing ability and good financial position.Then this paper makes further analysis about the cost and risk of the mixed payment chosen by Blue Focus,the mixed payment would cause the dilution of large shareholders,the increasing liquidity risk and so on.At the same time,this paper discusses the performance of mixed payment from sovency,growth capability and shareholder value.Last of all,this paper summarizes revelations through the dicussion.As payment methods influence the result and overall effects of merger and acquisition directly,therefore,when enterprises implement merger and acquisition,they should take full consideration of internal and external factors,making available payment schemes according to pratical situation of company,calculate their cost,evluate whether the potential risks of available schemes are within the scope of the company's control,finally,select the optimal payment method.