| Since the open policy and reform,the investment on construction of the highway industry has been growing.As of late 2015,the all mileage of the national highway traffic has been 125300 kilometers,which is the number one in the world.The development of highway actively promote the development of the national economy,and it is an important symbol of modernization of a country.The other way,highway’s development plays an important role on modern logistics and the quality of the public life.However,highway construction cycle is long,which need to raise more funds.The shortage of funds is the most important question of the highway investment companies.According to statistics,the highway enterprise’s investment amounts about 60% come from bank loans.The high debt ratio increase the risk of insolvency,harm to enterprise’s sustainable development.Therefore,to deal with the highway company financing problem is a prerequisite for accelerating the development of highway.This paper put the Z expressway company purchase A project financing cases as the research object,Z expressway company is the biggest highway company listed in Singapore.The merger and acquisition promote the company’s growing size and high profit,paper expect using the literature research,inductive analysis and field research method to resolve the problem of highway financing through studying the Z expressway company purchase A project financing case:First,this paper introduces the basic situation of Z highway company and the basic situation of A project company.And summarize the financing process of acquisition of A project company.This financing adopt three ways which including the domestic syndicated loan financing,foreign bridge loan financing and a rights issue financing,matching the company’s future cash flows.In addition,this paper introduces the change in three aspects which include corporate capital structure,financing the company’s financial performance and corporate governance changes:Next,this paper analyzes the background and the reason of financing.The background excludes such point: project acquisition task hard,the hard external directly financing environment,debt financing has more space and the company has a wide choice of the financing channels.And the paper analyze the potential risk of financing is respectively from endogenous financing risk and external financing risk two aspects.Company should know the risks and do a good job in risk prevention in the process of financing.Meanwhile,through the contrast and analyze the comprehensive cost of the financing with the financing of acquiring JiuRui highway and the financing cost of GanYue expressway buy WenHou highway,points out that the comprehensive financing cost is low.Finally,the paper summarizes the experience and enlightenment of this acquisition case,then put forward the proposal respectively for Z highway company itself,the other company of highway industry.Through the case analysis,this paper argues that the highway company financing should consider multiple factors such as financing environment,strategies,motivation and the cost of financing,and reasonable choose the financing way,reduce the financing risk and the financing cost. |
