A Research On The Motivation And Performance For Nanning Sugar Industry’s Asset Divestiture

In order to improve the industry concentration and accelerate the gathering of resources to advantageous enterprises,the people’s Government of Guangxi Zhuang Autonomous Region has put forward policy guidance on eliminating backward production capacity and supporting leading enterprises in the sugar industry in several documents.At the same time,under the background of the continuous decline of sugar prices and the operating difficulties of sugar companies,Nanning Sugar Industry,the largest state-owned sugar listed company in China,stripped off its subsidiary Huanjiang Yuanfeng sugar in 2019.Based on this case,the thesis studies the motivation and performance of this asset divestiture.Combined with the theoretical basis and literature related to asset divestiture,the thesis explains the connotation and definition of asset divestiture in detail,and discusses the motivation,operation process and performance evaluation of asset divestiture of listed companies,in order to provide some enlightenment for the practical application of asset divestiture.Combined with the policy and industry background of Nanning Sugar Industry’s asset divestiture and the specific situation of the company,the thesis introduces and analyzes the information of the companies involved in the asset divestiture,process and methods of asset divestiture in detail,and summarizes that the motivation of Nanning Sugar Industry’s asset divestiture mainly includes policy guidance,strategic error correction,increasing liquidity,turning losses and protecting the shell.At the same time,the thesis comprehensively evaluates the performance of Nanning Sugar Industry’s asset divestiture through event research method,financial indicator method based on the detailed rules for comprehensive performance evaluation of central enterprises and data envelopment analysis.It is found that the short-term market performance of this asset divestiture is poor,but the long-term market performance,the financial performance and the operating performance are great.Combined with the analysis of the motivation of Nanning Sugar Industry’s asset divestiture,the comprehensive performance of the asset divestiture is excellent.This divestiture has also brought some enlightenment,such as paying attention to matters outside the financial statements during mergers and acquisitions,correctly understanding the relationship between the motivation of divestiture and performance,and establishing a scientific and objective long-term performance evaluation mechanism to better make decisions on enterprise reorganization.