According to foreign media reports, in the merger and negotiations between Honda Motors and Nissan Motors, the two companies will discuss the merger of business into a new holding company. Considering the average price and assets of the stocks of both parties, the merger of Honda and Nissan car mergers or Nissan cars negotiate or negotiate or Nissan cars. Starting from 5-1.
According to the memorandum of understanding signed by Honda Motor and Nissan, the proportion of merging shares will be determined in June next June. The factors are the stock market, because the stock market is an objective indicator, and it is easy to obtain the understanding of shareholders.
Among Japan’s recent business integration cases, many of them are the average stock price of 1 month, 3 months and 6 months by calculating and integration, and use this as the benchmark to determine the proportion of the merged share transfer. Therefore, the “Japan Economic News” was based on the 20th, and calculated the market value of three companies including Honda Motor, Nissan and Mitsubishi Motors in three periods (1 month, 3 months, and 6 months ago).
Assume that the new holding company after the merger will not raise new capital, and Mitsubishi Automobile will also become part of the new company. When the market value of Nissan car is assigned 1, Honda’s market value is between “4.8 and 5.1”. Mitsubishi Motors is 0.4. If the merged new company’s shares are 100%, Honda will account for “77%to 78%” of the total shares, Nissan will account for “15%to 16%” of the total shares, Mitsubishi Motors will account for “6%of 6% To 7%”.
As French car manufacturer Renault Group holds 36%of Nissan’s shares (including trust shares), if the above calculation formula is adopted, Renault Group will hold about 3%of the shares of the new holding company. In addition, Episimo Capital Management Company, an active private equity fund, currently holds 2.5%of Nissan’s shares, but the shares of the new company after the merger are expected to decline significantly.
Recently, for those shareholders who have a negative attitude towards the “Honda Motor and Nissan Motor Merm Correspondence Plan”, Honda Motor announced the stock repurchase plan. Toshihiro Mibe, CEO of Honda Motor, said that it will invest 1.1 trillion yen (about 7 billion US dollars) to repurchase the company’s shares, and the upper limit is 24%of its issued shares.
S & P Global Inc., rating company, said in a report that any expenditure of Honda may be affected by its 1.1 trillion yen stock repurchase plan. S & P Global pointed out: “Large -scale stock repurchase not only does not help strengthen Honda’s future business foundation, but also leads to capital outflow.”