Story About The LYC-YCEG Acquisition
Resource from: cbcc-yinx Likes:3035
Sep 07,2005
At the end of 2004, LYC was acquired by Yongcheng Coal & Electricity Group(YCEG), which was regarded as an impossible event by the insiders. How can LYC, a former power in Chinese bearing industry become subsidiary of YCEG, a non-bearing enterprise.
On Sept. 2 2005, as a former Chinese bearing power, LYC was not found in the latest list of China Famous Brand Products, in which ZWZ, Wanxiang, HRB, C&U and TMB were included. Consequently, LYC again became the hot word in China bearing industry.
On Dec. 18 2004, under the pressure of large amount of debt, LYC was forced to be acquired by YCEG. Before that acquisition, LYC had owed so many debt that no banks would like to borrow money to him. This gave LYC a fatal blow. Also LYC had turned in vain to the international famous enterpirses for help, like NTN. Finally, it was YCEG, a rich company specialized in coal industry, that agreed to help LYC through acquisition.
In recent years, there were large demand for coal, petroleum and other resource products in Chinese even world markets. As a resource oriented enterprise, YCEG become more and more profitable. Although YCEG was not a enterprise with long history like LYC, it was a buyer with enough money. If LYC wanted to survive, it had no choice but agree to the acquisition.
What's the reason that a previous famous enterprise could turn out to be acquired by a non-related enterprise? This is the question that make all insiders puzzled. In order to make it clear, some media organized lots of interviews. But the outcome is nearly nonsense. No one could tell us a reasonable story about LYC's recession.
According to Mr. Yan jimin, the former president of LYC and former provincial governor in He'nan procince, the internal unbalance of transformation, development and stability is the problem. The company only focused on stability when it's time to make some transformation and when they realized the importance of transformation, they had become unable to afford it. Additionally, there were lots of problems in LYC's internal administration. These problems contributed to the large amout of receivables and debts when LYC was acquired by YCEG.
The present leaders from both LYC and YCEG had avoided to say something about the case deliberately.
It's also said that the YCEG has planned to sell LYC to some other bearing enterpirses. The future of LYC become uncertain.
(cbcc-yinx)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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