Study On MD Absorption And Merger XTE Stock Exchange Plan

In recent years,although there are still many difficulties and obstacles in the process of stock-for-stock merger in China's listed companies,more and more companies hope to strengthen their core competitiveness through the way.At the same time,as the Chinese economy transitions from a period of rapid growth to a period of maturity,many industries have gradually entered the era of stock games from the era of incremental competition.In this context,the stock-for-stock merger of XTE Limited Company by MD Group has created a new idea for promoting the leap-forward development of private-listed companies through stock-for-stock merger.This is the first case of spontaneous stock-for-stock merger among privately-listed companies,and the first case of privately-listed company to undergo A+B share conversion.Therefore,i choose this case for research,hoping to provide a reference experience for privately-listed companies to solve the remaining problems of B shares and achieve group integration.In the research process of this article,firstly,introduce the basic situation of MD and XTE,and elaborate on the content and operation process of the stock-for-stock merger plan;Secondly,analyze the motivation of MD stock-for-stock merger XTE;Again,the rationality of the design of MD repurchase before merger plan announcement,share exchange ratios,protection of dissident shareholders' rights and interests is discussed,so that i can determine whether the design is conducive to promoting the merger process and protecting the rights and interests of medium and small shareholders;Finally,the research found that:First,the reasonable share repurchase program and the share exchange ratio is conducive to improving the success rate of the stock-for-stock merger;Second,the disparity between the pricing of the dissent shareholder's protection rights and the conversion price is too wide,which will make the dissent shareholder exit mechanism is invalid and cannot fully protect the rights and interests of medium and small shareholders;Third,the large amount of cash dividends or the unreasonable adjustment design during the merger will damage the interests of medium and small shareholders.