(Yicai Global) Aug. 23 -- Shanghai Yunda Freight Co., one of China's largest courier companies, is to swap equity worth CNY17.76 billion (USD2.67 billion) with electrical product maker Ningbo Xinhai Electric Co. [SHE:002120] to achieve an initial public offering.
Xinhai Electric's assets are worth CNY674 million (USD101.4 million) and Yunda Freight's assets are worth CNY17.76 billion, Xinhai Electric said in an announcement. The new company will issue 863,365,331 shares at CNY19.79 (USD3) each to make up the CNY17.1 billion difference.
Yunda Chairman Nie Tengyun, his wife Ms. Chen Liying and their co-ordinators will hold a 69.97 percent stake in the listed company.
Shanghai Yunda Express Co. is the fourth private express delivery company to seek a backdoor listing. Courier firms are eager to list as price wars, rising labor costs and slowing growth cut into profit margins, forcing them to turn to other means of financing to expand their business.
Last December, Shentong (STO) Express Co. reached a CNY16.9 billion asset swap agreement with Zhejiang IDC Fluid Control Co. [SHE:002468]. In May, Maanshan Dingtai Rare Earth & New Materials agreed to buy 100 percent of SF Holdings (Group) for CNY43.3 billion. In July, Dalian Dayang Trands Co. [SHA:600233] revealed that Shanghai YTO Express (Logistics) Co.'s plan to list via a reverse merger.