Motivations And Performance Analysis Of Introducing Strategic Investors By Private Placement

Directed issuance is one of the important ways of equity refinancing.When a listed company introduces strategic investors by private placement,not only can it obtain the funds needed for sustainable development,but more importantly,it can also acquire the advanced technology,management experience and broad market channels brought by strategic investors.Equity cooperation also brings special resources to listed companies that are not easily controlled by their own businesses.For the private placement of introducing strategic investors,it has a longer stock lockout period,which weakens the motivation of the issuer to short-sell stock arbitrage and achieve long-term and long-term cooperation between strategic investors and listed companies.At present,domestic research mainly centers on the behavior of commercial banks introducing strategic investors,discusses the changes in the performance of commercial banks after the introduction of strategic investors,and the help of their IPOs.There is relatively fewer researches on domestic non-bank listed companies.With the deepening of economic globalization and the reform of China's shareholding structure reform,whether companies need to introduce strategic investors or how to introduce strategic investors has become a major issue that our government and companies have paid close attention to.The continuous improvement of the introduction system of strategic investors is of great significance for realizing the value-added of the capital market and ensuring the healthy and orderly development of the economy and society.As an appliance company giant,Midea Group has increasingly fierce competition in the industry and the complexity of the external environment has constrained its development.It is necessary to explore an innovative growth mode and seek broader space for development through capital operations.This paper takes Midea Group introducing Millet Technology as an example to analyze the motivation and performance o of the introduction of strategic investors in the company in order to provide reference for other companies that intend to introduce strategic investors.This article combines the methods of literature research and case analysis,firstly combing the concepts of the introduction of strategic investors by private placement and summing up the common motives for the introduction of strategic investors.Next,guided by related theories of property rights theory and principal-agent theory,this article introduces the process of the introduction of strategic investment from Millet Technology by Midea Group.It focuses on analyzing its motives,including improving the capital structure,raising the capital operating capacity of emerging industries,learning the advanced technologies and experiences of internet companies in order to achieve intelligent transformation,and achieving strong alliances among enterprises.Then it analyzes impacts of the introduction of strategic investors by Midea Group on its business,corporate governance,and investment behavior.After the introduction of Millet Technology 's strategic investment,Midea increased its product market share,improved corporate governance,and satisfied the company's cash flow requirements for outbound investments.Finally,through a comparative analysis of the Group's profitability,operating capacity,debt repayment ability,and development ability,it has been found that the overall financial indicators of Midea Group after the introduction of strategic investors have been optimized.The introduction of strategic investors has a positive effect on the stock price and the excess return of shareholders.It can be concluded that the introduction of millet technology strategic investment by Midea Group has provided valuable experience for its strategic transformation and also improved its operating performance and shareholders' wealth.The successful introduction of strategic investment from Millet Technology by Midea Group can give us the following inspirations: In the process of introducing strategic investors,the company must first clarify the development strategy and carefully select the appropriate strategic investors;secondly,the strategic cooperation between home appliance companies and Internet companies helps it realize its intelligent strategy;Finally,the effective integration after the introduction of strategic investors is the key to success.