May 21, 2024

Look behind the concurrency of three acquisitions in the industry chain

Jiwei.com News With the increasing problem of stock pledges of listed companies in the mobile phone industry chain, state-owned assets all over the country have come to the rescue. Recently, a company called Fujian Electronic Information (Group) Co., Ltd. has been particularly active in it. This company has been featured in many equity transactions in the industry this year. The three acquisitions mentioned below are actually related to the company.

The first is the protagonist of the first transaction, the ODM manufacturer Zhongnuo Communication.

Recently, Furi Electronics announced that Zhongnuo Communication, a wholly-owned subsidiary of the company, will acquire an 80% stake in Shenzhen Unimic Technology Development Co., Ltd. held by Zunyi Zhixin Communication for 100 million yuan in cash.

Judging from the content of this announcement, it seems to be a normal equity transaction; however, behind this transaction, there is a big chess game.

Swallowing the bid for the North American market

First of all, from the point of view of the announcement, Zhongnuo Communication, a wholly-owned subsidiary of Furi Electronics, has appraised the overall value of Unimac with the approval and filing of the Fujian Provincial State-owned Assets Supervision and Administration Commission of RMB 129.22 million (hereinafter "100 million yuan"). ""10,000 yuan" all refer to RMB) as the pricing reference basis, after negotiation, it was determined to acquire 80% equity of Unimac held by Zhixin Communication with 100 million yuan in cash. After the acquisition is completed, Zhongnuo Communication will hold 80% of the shares of Unimac.

In fact, the target company is not well-known in the industry, so the occurrence of this incident is indeed somewhat unexpected. However, according to the content of the second half of the announcement, it seems that the reasons for this transaction have been given.

It is reported that the target company is a domestic mobile phone solution provider mainly engaged in overseas business, and has established close cooperative relations with major overseas telecom operators, among which the North American market has the most business advantages. On the other hand, Zhongnuo Communication has benefited a lot in the domestic market due to the favor of its major customer Huawei. In contrast, the overseas market, which has not had major breakthroughs, has become a shortcoming.

In the past two years, the decline in sales in the domestic terminal market has become more and more obvious. As an ODM, the pressure on shipments and costs are increasing year by year. At this time, it is a good choice to focus part of the business on overseas markets to relieve the pressure brought by the domestic market. From this point of view, Zhongnuo Communication seems to have seen the target company's advantages in overseas markets, and intends to use the company's cooperative relationship with overseas operators to weaken its own shortcomings.

Interestingly, the deal is actually tied to another deal that took place last month.

The advantage of realizing integration with the industry chain

The author checked the data and found that the controlling shareholder of Furi Electronics, the parent company of Sino-Norway Communications, was Fujian Furi Group Co., Ltd., which held 20.65% of the shares of Furi Electronics, and the actual controller of Furi Electronics was Fujian Electronic Information (Group). ) Co., Ltd., which holds 30.22% of the shares of Furi Electronics. At the same time, the ultimate controller of Furi Electronics is the State-owned Assets Supervision and Administration Commission of Fujian Province. (Details are as follows)

Look behind the concurrency of three acquisitions in the industry chain

It is not difficult to find that the equity acquisition case related to Sino-Nuo Communication was also facilitated by the State-owned Assets Supervision and Administration Commission of Fujian Province. Not long ago, the State-owned Assets Supervision and Administration Commission of Fujian Province also invested in the acquisition of a 15% stake in Jiangxi Holitech Co., Ltd., a manufacturer of intelligent terminal components, and became the company's controlling shareholder.

An industry insider pointed out: "The two acquisitions are actually related to a certain extent, and the State-owned Assets Supervision and Administration Commission of Fujian Province intends to develop the electronics industry. The acquisition of Holitech is first because the company has a lot of product lines, and the other is because of the obvious price of product integration. Cost advantage; combined with its subsidiary Zhongnuo Communication, to complete the integration from the terminal to the industrial chain."

Jiwei.com also learned from the supply chain that although Holitech has already supplied it as a supplier of Zhongnuo Communication, the two parties will further cooperate after the completion of the two acquisitions mentioned above. Such integration from the industrial chain to the terminal will maximize the cost advantage and maximize the benefits of all parties.

Finally, reviewing the announcement, in addition to the two transactions mentioned above, Fujian SASAC also acquired its integrated circuit business through equity acquisition.

The announcement shows that Furi Electronics will transfer its 30% equity interest in Fujian Fushun Microelectronics Co., Ltd. (hereinafter referred to as "Fushun Microelectronics") to Fujian Electronic Information (Group) Co., Ltd. It is understood that the main business scope of Fushun Micro includes the processing of various semiconductor discrete devices and integrated circuit chips.

At present, China is experiencing an upsurge in investment and development of the integrated circuit industry. As a link in the upstream supply chain of terminal products, integrated circuits play a vital role in the entire chain and are obviously an indispensable part of this game of chess.

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