Financial management is the core of the enterprise management because to make good financial management can create wealth.The survival,development and profit of the company's overall goal can hardly do without from financing,investment and distribution management of finance. As for an enterprise, it must also need to establish a reasonable financial management goal. In the profit maximization objectives and capital profit margin or every profit maximization goal serious impact can consider to shareholder wealth maximization as enterprise financial management goal. With shareholder wealth maximization goal to replace, on condition that in joint-equity enterprises or limited corporations that its application in a certain extent overcome short-term behavior of the enterprise and can corectly handle the relations of the earnings and risk in the enterprise, the relations between immediate interests and long-term interests. It is based on agency theory which is through the reasonable management in the financial to bring the most of the wealth for shareholders. Realize shareholder wealth maximization requires enterprises to sustainable development and share prices have steady so that the shareholder wealth can achieve maximum, namyly that shareholder value is to bring the future returns for owners. Under the condition of shareholding economy, the shareholder wealth maximization finally embodied in stock prices, stock prices is the present value of the business income in the future. The financial management target from profit maximization to enterprisefinancial management goal and continuour evolution which each have advantages and disadvantages, and also has certain life cycle. China current enterprise wide application and value of enterprise financial management goal will also accept the inspection from the market and constantly improve in practice.
In a market economy environment, the two original power of acquisitions behavior is in order to realize the maximization of enterprise value financial goals and strengthen the enterprise market competition ability. By purchase behavior can produce synergistic effect that to realize the strategic restructuring and carry out business diversification, thereby the future earning of enterprise have great influence. Stock acquisition is a kind of purchase behavior which is refers to the acquisition of the target company shareholders to issue its own stock, in exchange for the target company's most or all of the equity and to get the target control of the company.
Therefore, the stock acquisition can make company use low cost quickly into the target company in the rapid growth of the industry and that is largely keep the target company's market share and all kinds of available resources, so as to ensure the continuous profitability. Publicly traded stock price reflects many investors to its intrinsic value judgment, it can reflect the enterprise's profit ability, the dividend, enterprise risk, capital structure, asset value and other factors, therefore, in the purchase process, share exchange rate of the market value per share is become a key focus of the acquisition negotiations.
1 February, according to China Insurance Regulatory Commission news reported that Charoen Pokphand Group acquired 12% stake by Ping An Insurance Group of China through transaction approval. Then, Ping An H shares(02318)rose1%, to $70.45(HKD). A-share(601318)go up 5%, quote 50.77 RMB. Charoen Pokphand Group hand completely take over 15.57% shares from HSBC which total cost $72.7 billion(HKD). With the completion of the transaction, it means that the richest of Thailand's richest who is Dhanin Chearavanont control of the enterprise and become big shareholders of China's overall financial leading enterprise.
And after completed the first equity transactions and share Ping An Insurance Group executives holding company ‘Jiangnan industrial’38% equity that Charoen Pokphand Group actual accumulated hold 16.68% stake of Ping An Insurance Group.
This Thailand Company is main business is husbandry, foodstuff and commercial and without involved in the China financial industry. Therefore, the investors worried that the former big shareholders HSBC holdings have been 'behind the scenes is resigned' 10 years, is Charoen Pokphand Group will be interventing into day-to-day operations of the Ping An Insurance Group, thus affecting it established comprehensive financial steps.
To this, Charoen Pokphand Group clear statement that will use by long-term strategic investors identity to support Ping An Insurance Group's future development and identity with their current management and comprehensive financial business model, the both sides will jointly to the development of China's rural financial and insurance business which complementary each 'short board'. Familiar with the insurance person all know, compared with another big insurance company --- China life Insurance(LFC), and Ping An Insurance Group of the advantages and disadvantages are obvious. Advantage together with financial full Licences and disadvantage is business share relatively weak in rural market. However, for the Charoen Pokphand Groupcan be in Ping An beaching rural financial market in the process of how many resources to provide assistance? Are they can bring Ping An which shareholders effect or added value, is still uncertain.
However, Ping An Insurance Group is basking in executive team 'new and old alternate' transition period, it still need to be alert to the possible management, business model changes brought by the risk. Every decision from the company will affect the stock fluctuations. When stock prices reach the highest will achieve the shareholder wealth maximum. The trend of making the administrants more younger of the Ping An Insurance Group, whether can lead the developing hard-edged gold control group head towards century-old firm? I think it is become one of the most concerned at present.
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