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Select firms float non-tradable shares
By Chen Hua (China Daily)
Updated: 2005-09-13 05:55
After the success of a pilot project, the nationwide reform of split (tradable and non-tradable) share merger was officially launched yesterday as 40 companies listed on the A-share market unveiled their detailed proposals to float their non-tradable shares.
Twelve Shanghai-listed companies and 32 Shenzhen-listed companies including 8 listed on SME (small and medium-sized enterprise) Board were allowed by the two stock exchanges to take measures to float the non-tradable shares.
The 40 companies cover a range of industries such as banking, manufacturing and pharmaceuticals.
These companies offered more generous compensation to the holders of tradable shares.
The 12 Shanghai-listed companies offered, on average, 3.2 shares to the holders of tradable shares for each 10 held, higher than the number of 3 shares for the pilot firms.
The China Minsheng Banking Corp, China's first joint stock commercial bank, offered 1.55 shares to all its shareholders for each 10 held.
The holders of non-tradable shares gave up their part of new shares and transferred them to the holder of the tradable shares.
Minsheng's holders of tradable shares will get 5.2 shares for each 10 at hand.
State-owned enterprises (SOEs) accounted for about half of these 40 companies.
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