A Case Study Of Baosteel's Merger And Acquisition Of Wuhan Iron And Steel's Share Swap Ratio

Affected by the downward pressure on the economy,the iron and steel industry is generally experiencing overcapacity and a downturn in the iron and steel industry.The central government promptly put forward the strategic policy of supply-side structural reforms,through the merger and reorganization of iron and steel enterprises to optimize the industrial structure,thus opening up the iron and steel industry.Another round of restructuring climax in the industry.In my country,the development of M&A cases involving share swaps,absorption and mergers is relatively short.In addition,the development of my country's securities market is not perfect,and the information disclosure system is not perfect.Therefore,it is more necessary to accurately evaluate the value of the enterprise in the conversion and absorption merger,so as to reasonably try to calculate the conversion ratio.Because this not only plays a role in the success of corporate mergers and acquisitions,but also plays an important role in the healthy development of my country's securities market.This article selects the case analysis of Shanghai's merger and acquisition of WISCO.Baosteel's merger and acquisition motives for WISCO can be divided into internal and external motives.Among them,the internal motivation mainly refers to the motivation of business operation,the motivation of strategic reorganization and the motivation of technological innovation;the external motivation mainly refers to the industry integration and the leading motivation of policy.Due to the lack of cash payment,the control of mergers and acquisitions will not change,transaction costs are saved,and result analysis is generated,Baosteel Co.,Ltd.adopts share swap payment for mergers and acquisitions.This article uses the market method and the income method to determine the intrinsic value of Baosteel and Wuhan Iron and Steel,and then calculates the conversion band on this basis.Finally,according to the case of Baosteel's acquisition of Wuhan Iron and The rationality analysis of the LG model of the conversion model based on the evaluation results of the method and the result method found that the ratio of the share conversion tested based on the intrinsic value or the price of each stock market is within a reasonable range,but within this range Baosteel Co.,Ltd.is a trial-calculated method of share exchange based on value.For the difference analysis of the above results.This article aims to provide listed companies in the iron and steel industry with a method to determine how to reasonably determine the exchange in the merger and acquisition activities.This is because only a scientific and reasonable determination of the proportion of shares that enable both parties to accept the exchange can ensure the success of the merger and realize the benefits of the interests of both shareholders.