Analysis on the Possibility of Gree Company Resisting “Barbarians at the Door” After the Mixed Ownership Reform

DOI

10.2991/aebmr.k.220306.030How to use a DOI?

Keywords

Gree Inc; Mixed-ownership reform; Barbarians; Management

Abstract

In 2019, Gree Electric Appliances, Inc. of Zhuhai (Gree Inc.) carried out a new round of mixed-ownership reform. The main purposes of this reform are to introduce new strategic investors into the company and, at the same time, provide the management of Gree Inc with unprecedented power. And this paper will discuss the significance of the mixed-ownership reform of Gree Inc from the perspective of the ability to resist barbarians in the capital market, which is groundbreaking. In the analysis, the shareholding structure of Gree at present will be compared with that of China Vanke Co., Ltd (Vanke) in 2014 which once suffered from hostile takeover to demonstrate how the management of Gree Inc can defend against barbarians by taking the advantage of shares. After a comprehensive analysis, it can be concluded that after the reform, Gree Inc has more advantages in resisting the barbarians of the capital market than Vanke in 2014. Specifically, the management of Gree Inc is able to utilize more than 30% of shares, including the shares of the largest shareholder, when faced with a hostile takeover. And this is strong enough to prevent barbarians from making any material resolutions in the general meeting of shareholders, which ensures the normal running of Gree Inc and the original board of directors.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Junshen Lin
PY  - 2022
DA  - 2022/03/17
TI  - Analysis on the Possibility of Gree Company Resisting “Barbarians at the Door” After the Mixed Ownership Reform
BT  - Proceedings of the 7th International Conference on Economy, Management, Law and Education (EMLE 2021)
PB  - Atlantis Press
SP  - 184
EP  - 191
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220306.030
DO  - 10.2991/aebmr.k.220306.030
ID  - Lin2022
ER  -