This article is from WeChat public account: DsstCapital , author: Peng will, from the title figure: Figure worm
For investors’ doubts, China Investment Network contacted the relevant person in charge of Jumei Youpin. The other party stated that the privatization offer is only an early stage, and a complete process is needed for true privatization.
“If Jumei Youpin is privatized at a low price, all investors are losers. Only Chen Ou is the only winner.” Investor Panda (Pseudonym) Angrily.
After 4 years, Jumei Youpin will throw away the privatization plan.
On January 12, 2020, Jumei Youpin (NYSE: JMEI) announced that the company’s board of directors received the founder Chen Ou as the head The buyer group ’s privatization offer is planned to purchase stocks not yet held by the buyer group at a price of $ 20 / ADS, which is a 15% premium to the closing price of the previous trading day. After the acquisition is completed, Jumei Youpin will be delisted from the NYSE.
As soon as the news came out, the small and medium shareholders were in an uproar, calling Chen Ou “Chen Eryuan.” Many investors told China Investment Network that they had not expected that Jumeiyoupin would be privatized at a price lower than the listed issue price.
In fact, as early as February 18, 2016, Chen Ou believed that Jumei Youpin was seriously undervalued by US stocks and proposed privatization, but it ended in failure. Subsequently, due to a series of storms such as the crisis of fakes and the departure of executives, Jumei Youpin fell into a downturn and the stock price continued to fall. Company market cap fromOn the first day of listing, US $ 3.433 billion fell to US $ 200 million today, plunging 94%.
As a cosmetics limited-time shopping mall, Jumei Youpin was listed on the NASDAQ in May 2014, but its performance has been declining year after year. The company’s revenue in 2018 was 3.359 billion yuan, a year-on-year decline of over 40%. GMV also declined year after year, from 7.3 billion yuan in 2016 to 4.6 billion yuan in 2018.
Four years later, when privatization is mentioned again, the beauty of Jumei Youpin is no longer, how should Chen Ou deal with investors’ questions?
Hold Jumei Youpin for three years and lose 10 million yuan
“Small and medium investors are basically losing money. The Jumei Youpin Investment Exchange Group I am in has now become a activist group.” Investor Lin Hao (pseudonym) tells China Investment Network that he currently holds more than 70,000 shares of Jumei Youpin (After the merger) , the total loss was more than 10 million yuan.
“I bought at Jumei Youpin at $ 4 / share, and I have been holding for three or four years.” Lin Hao carefully analyzed Jumei Youpin. The fundamentals are good and the assets have been greater than Market value, did not expect the privatization of stock prices so severely suppressed.
Lin Hao said that on the surface, the price of Jumei Youpin’s privatization was almost the same as the issue price of 22 US dollars at the time of listing, but it was actually the price of ten shares.
On January 10, 2020, Jumeiyoupin announced the adjustment between ADS (American Depositary Shares) and Class A ordinary shares The ratio was adjusted from the original 1 ADS representing 1 class A common stock to 1 ADS representing 10 class A common stocks. In this way, Jumei Youpin increased its share price per share. In other words, the privatization price of US $ 20 per share is equivalent to US $ 2 per share before the joint venture, which is only 28.5% of the share price of the first privatization.
Investor Yulin (pseudonym) tells China Investment Network that when Jumei Youpin announced the joint stock price, it was fortunate that it had sold all the shares half a year ago. Sold it, “Actually when Dai Yusen, co-founder of Jumei Youpin, withdrew, I started to shake.