Yonghui Supermarket (601933): Proposed Tender Offer for Zhongbai Group’s Industrial Integration Goes Further

Yonghui Supermarket (601933): Proposed Tender Offer for Zhongbai Group’s Industrial Integration Goes Further

Yonghui intends to tender for Zhongbai Group10.

14% equity, the equity ratio increased to 40%, and the offer price was 8.

10 yuan / share, a 26 premium over the average price of the first 30 days.

56%, a premium of 22 from today’s closing price.


Takeover funds 8.

1 yuan / share calculation, the required funds 5.

$ 5.9 billion from Yonghui’s own or self-raised funds.

The high premium of the tender offer demonstrates Yonghui’s determination.

Yonghui began to increase its shareholding in Zhongbai to 5% through the secondary market in 2013, and then continued to increase it to 29 in Q3 of 2017.

86%, Wushanglian Group and concerted action artificially maintain control, and also continued to increase to 34%.

Currently, the board of directors of Zhongbai Group has 6 seats, 3 of which are from Wushanglian, 2 of them are from Yonghui, and 1 of them is Shin Kong Holdings, the third largest shareholder.

If this tender offer is successful, Yonghui will become the largest shareholder of Zhongbai Group, and the success of subsequent follow-up needs to be continuously monitored.

Zhongbai business significantly strengthened Yonghui.

Currently Yonghui is expanding nationwide and entered Hubei in 2017. According to the official website, there is currently only one store in Xiangyang.

Zhongbai Group is the leading commercial hub in Hubei. In 2018, warehouses / supermarkets / convenience stores / department stores each had 179/748/302/9 stores, with expenditure income of 15.2 billion yuan (+0 compared to the same period last year).


For the successful bidding and acquisition, Yonghui formed control over Zhongbai, and was able to resist and strengthen in terms of store resources and supply chain.

Leaders in the industry consolidation period continue to increase market share.

The entire supermarket industry is currently facing a period of consolidation and reshuffle. In 1995, the Chinese hypermarket format was dated by foreign investment in China. After more than two decades of development, it gradually encountered contradictions. E-commerce and near-field community formats have impacted the market share.Enterprises with poor capabilities are facing some pressure to survive, and companies with strong operating capabilities take the opportunity 四川耍耍网 to expand through mergers and acquisitions and increase market share.

In the past year or two, Yonghui took over Baijia; Backgammon acquired Jiarunduo; Jiayue acquired Fuyuexiang and took over CR Vanguard Shandong; Wumart acquired Lotte North and took over CR Vanguard Beijing. The industry will gradually move to advantageous companiesconcentrated.

Investment suggestion: Yonghui’s fresh-food supply chain capabilities are integrated to protect the city for a long time. The merger and consolidation at the end of the 18th will help optimize the governance structure and control costs. The cloud superstores will continue to expand rapidly to increase market share., Commodity structure, governance mechanism, etc. gradually mature, optimistic about the company’s ability to continue innovation and iteration, expected 19/20 net 杭州夜生活网 profit 24.


13 trillion, currently corresponding to PE32.


0x, maintaining “strongly recommended-A” level.

Risk reminders: 1) The tender offer fails to land.

2) New business development was less than expected.

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