News on March 8, NavInfo, suspension for more than one month issued an announcement today, finally disclosed the detailed reason and situation of this suspension. It is said that SASAC has already approved China Survey transfers part of NavInfo stocks by the way of public collection with the number of 7800 shares, which accounts for 11.28% of the total stocks. China Survey held 23.86% stocks before, and after this transfer, it will hold about 12.58% stocks, still the first major shareholders. Because China Survey requests the potential transferee must be a single transferee and independent transferee with no transfer shares, joint bid is not accepted. That is to say, disk access will become the second major shareholders.
NavInfo was founded on December 3, 2002, and listed on the Shenzhen SME board on May 18, 2010. Now, the company"s total share capital is 691,596,710 shares, China Survey holds 164,994,019 shares, all are tradable shares, accounts for 23.86%. China Survey is the controlling shareholder of NavInfo, while China Aerospace Science and Technology Corporation is the actual controller. As the leading digital map content, dynamic traffic information service and car networking, industry application solution provider in China, NavInfo gross revenue in 2013 is 0.881 billion yuan, net profit ownership of the shareholders of the listing corporation is 0.105 billion yuan; the total assets is 2.988 billion yuan, shareholders equity of the listing corporation is 2.41 billion yuan.
In the past two years, the booming of mobile internet let the location service become a hot area for Tencent, BaiDu and Alibaba. Especially after this Spring Festival vocation, after become the first major shareholders of AutoNavi, Alibaba launched a takeover offer for AutoNavi. Alibaba wants to takeover the rest 72% shares by the price of about 1.1 billion dollars. This will let AutoNavi assessment value is about 1.5 billion yuan. AutoNavi is one of the twelve enterprises having navigation and mapping quality. After this takeover, Alibaba will absolutely enrich itself at the area of location service. At the same time, it will gain an application which has billion users and consolidates its status in the mobile Internet era.
For Tencent and BaiDu, although they takeover Ainavi and Changdi separately which having navigation and mapping quality. But these two map providers have a large gap with AutoNavi. Meanwhile, NavInfo becomes a hot property for us. But because China Survey, the biggest shareholder of NavInfo, is a state-owned enterprise, company ownership structure adjustment is not only a simple capital operation, this hot property can only be watched. This time, SASAC approved China Survey transfer part shares cleared this barrier. On the premise of China Survey’s major shareholders status, Tencent and BaiDu can be introduced as the strategy partner and become the second major shareholders.
For NavInfo, as the NOKIA business continually atrophy, its consumer electronics business which is facing internet area has already could not provide huge profit, while the free of mobile phone navigation changes the previous business model. Now is a time for make a change and develop a new model. Therefore, this stock right transfer condition of China Survey, the potential transferee must have the internet resource directly or indirectly, and can support NavInfo existing business, bring development opportunities for future business. We can know that from NavInfo 2013 annual report, NavInfo development strategy is making vehicle navigation electronic map and car networking become the main profit resources; let the integrated geographic information service including LBS, mobile internet map service, dynamic traffic information service and business intelligence services relevant to geographic position as the important profit point; seize the development opportunity of things internet, BeiDou, new energy vehicle and big data, increase the investment for car networking and develop new business growth point.
Who will become the second major shareholders of NavInfo still needs to wait in the next tem days. But the noteworthy information is that, Sougou CEO Mr. Wang Xiaochuan is NavInfo’s independent director. He is not only the member of the nominating committee and the chairman of the remuneration and appraisal committee, but also the member of strategy committee. Also, Sougou received the investment of Tencent last year. This information might be new strategy partner considerations for NavInfo.
The price of China Survey’s transfer stocks is no less than 1.504 billion yuan, and confirmed on the basis of various factors consideration. If according to this price, the total value of this transfer stocks is no lea than 1.173 billion yuan. The market value of NavInfo will reach to 10.4 billion yuan, matched 1.674 billion dollar about. It is slightly higher than the market value of AutoNavi.
NavInfo issued a statement that; it will continue the suspension at this public solicitation stipulated expiry date (April 17) according to the uncertainty of the potential transferee collection for China Survey.（zhangkai)