LUONIUSHAN farm, Meilan District, Haikou City, Hainan Province

LUONIUSHAN farm

LUONIUSHAN farm is located in Meilan District, Haikou City, Hainan Province.

Recently, LUONIUSHAN (000735) announced that its largest shareholder, Haikou state-owned LUONIUSHAN farm, is undergoing restructuring. It plans to purchase the operating net assets after deducting the non operating assets and reform costs at one time by employees to form a new company. After the completion of restructuring, 90.705 million shares and other assets and liabilities held by LUONIUSHAN farm will be transferred to the new company. it is reported that the SASAC's "opinions on regulating the restructuring of state-owned enterprises" strictly regulates the behavior of management buyout (MBO), but there is no separate restriction clause on ESOP. Therefore, some people commented that this time, LUONIUSHAN farm has its "wisdom" in engaging in ESOP rather than MBO: Although ESOP can not escape the constraints of the opinions, it is easier to be approved after all; in the future, it can still engage in MBO. At that time, as the state-owned property rights have been transformed into non-state-owned property rights, it can do what it wants and will not be subject to any restrictions. according to Mr. Wu Congfeng, the representative of securities affairs of the company, the main reason why LUONIUSHAN farm, the major shareholder, chose ESOP instead of MBO in the restructuring is that the original staff of the farm are in the formal establishment of the state, not contract workers and other factors. Mr. Wu estimates that the number of employees on the farm after the restructuring is about several hundred. According to the net assets of LUONIUSHAN, the reporter roughly calculated that the per capita investment of employees participating in the acquisition of farm assets will not be less than 200000 yuan. This figure is not small for the ordinary employees of a state-owned enterprise, so there will be many large purchasers in the whole ESOP process.