Authorities expand on restructuring measures
Print Edition
Authorities in Putuo District have amended preferential policies for mergers and acquisitions by institutions in a local zone dedicated to M&A deals.
Among the amendments are industry specific guidelines intended to promote M&A transactions in key industries.
This is part of the district government’s plans to encourage preferred businesses to agglomerate in the area.
By the end of the third quarter, the Shanghai United Assets and Equity Exchange offered M&A services to over 12,000 enterprises in the Putuo Merger and Acquisition Finance Gathering Area.
These transactions involved some 102 billion yuan (US$15.96 billion), up 44 percent year-on-year. Meanwhile, year-on-year revenue growth within Putuo’s financial industry is said to have hit 124.8 percent.
“Rules and facilities in the gathering area will be further improved in the next five years,” said Cheng Xiangmin, Putuo’s governor.
One major goal of the latest policy package is to optimize the upgrading of key industries through restructuring.
Toward this end, authorities have created new policies which encourage venture capital investment in high-tech incubators.
There are also new measures promoting cross-border M&A deals. Dongdu International Group, for example, spent US$16.4 million buying three landmark buildings in Detroit, Michigan, the United States.
Under the new policies, government-guided funds will give priority to investors with plans to take stakes in Putuo enterprises.
District authorities are also trying to lure capital into the construction of group innovation spaces and business incubators.
With the help of M&A investors, food delivery company Ele.me is said to have raised US$1.5 billion in series-F funding. Meanwhile, four companies including Shanghai Eshop Technology Co Ltd and Shanghai Dnion Information Technology Co Ltd are now listed on the local over-the-counter market.
Professionals and business associations are also taking part in these efforts. Already the China Mergers and Acquisitions Association and Shanghai Pudong Development Bank have jointly set up a financing alliance with 100 billion yuan in funds.
The Shanghai Bar Association M&A committee offers legal services to clients in the gathering area. An arbitration center and an M&A service organization are under construction.
The district will support Shanghai United Assets and Equity Exchange to tap the value of the mechanism to realize the benefits of innovation, officials said.
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