GUANGZHOU, China, July 2, 2015 /PRNewswire/ -- Evergrande (HK.3333)
announced on July 2 that the owned
Guangzhou Evergrande Taobao Football Club Co., Ltd (hereinafter
referred to as Evergrande Football) submitted the listing
application to the National Equities Exchange and Quotations (NEEQ)
and obtained the acceptance letter on July
1. An original report from Sina
Leju follows.
Evergrande makes good on its
property spin-off listing promise
To some, Evergrande Football, as
an independent listed company via
a spin-off listing from Evergrande to realize independent
operation and sole responsibility for its own profits or losses,
will help Evergrande to specialize
in its core business and enhance profitability; Evergrande has
made good on its promise to spin-off list new properties one by one to
reduce the level of liability and
accelerate the asset-light process.
International capital market offers
higher estimation on the specializing enterprises than on the
integrated enterprises. The spin-off listing of Evergrande
Football provides a clearer business and investment concept and
Evergrande will be offered higher estimation by the capital
market.
After the spin-off listing of
Evergrande Football, Evergrande's owner will be more clear,
beneficial for the company to focus on the core business, and to
realize specialized operation and fine management, and also
beneficial for improvement in the operation efficiency and
profitability. Research shows that spin-off can bring the
excess earnings of 2%~3% to the parent company, which might be
higher in China.
In addition, spin-off listing is regarded as an effective
initiative to reduce the level of liability. Moody and JP Morgan
also affirmed the effect of spin-off listing on reducing the level
of liability. Spin-off listing of Evergrande Football will help
optimize the capital structure and is expected to further reduce
the level of liability, so that Evergrande can make good on the
promise of "liability reduction".
Becoming the "First Asian Football Stock"
According to senior experts in the sports industry, there is no listed football club in the
Asian football world.
The listing of Evergrande Football will overturn the operation
tradition of the Super League Club, and Evergrande Football will
become a pioneer in reforming and innovating the professional
operation model of Chinese football. This listing application is a
milestone in China's football history and even Asia, and allows Chinese football to enter the
capital market for the first time. Evergrande Football will become
the first Asian football club to go public, and be the "first Asian football
stock".
The rise of Evergrande Football in recent years lays a good
foundation for the listing application.
Evergrande Football ranks No.1 in
Asia throughout the year in terms
of club rankings, attendance, number of fans, attention, etc., and
is the most successful and influential professional football club
in China at present.
Likely to Impose a "Winner-Take-All" Agglomeration
Effect
In fact, Evergrande Taobao Club has made full preparation for
the entrance into the capital market.
On June 24, Evergrande Group
increased the capital of the club by injecting into the club the
most valuable assets of Evergrande Football School, i.e. all
footballer assets, and providing the club with additional capital
of 400 million yuan in cash.
After the capital increase, the shareholding ratio of the club
has changed from 50%∶50% to 60% held by Evergrande Group and 40%
held by Alibaba Group.
The valuation of the club has increased significantly compared
to its 2.4
billion yuan value one year
ago when Alibaba became a shareholder, and the club has become the
first football club in Asia with a
value of 10 billion yuan.
It is believed that as Evergrande Football's valuation already
exceeded 10 billion yuan before the
listing application and there is
likely to be a "Winner-Take-All" agglomeration effect after its
listing, by virtue of its strong brand and strength, bringing huge
room for growth in future incomes, and hopefully resulting in a
market capitalization of several dozen
billion yuan.
According to comments in the football world, Evergrande Football
will become bigger and stronger by virtue of the capital market,
which will provide strong assurance for fulfilling its goal of
becoming one of the top 20 clubs in the world.
"The listing application of Evergrande Football will have a
significant demonstration effect in the reform and innovation of
the Chinese football management system and operation model."
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/evergrande-creates-first-asian-football-stock-via-spin-off-listing-of-evergrande-football-300108636.html
SOURCE Sina Leju