Mcglaughlin Announces Partial Shareholding Changes Intended To Reverse Market Decline

The capital operation of listed B2C has lifted the curtain of the tide of listing of B2C industry this year.

Mcglaughlin, known as "the first stock of B2C in China," announced that its controlling shareholder, the Sequoia Capital, sold 29% of the shares of sina, and Sina and China, which are famous for its operation in Kappa, purchased 19% and 10% of the shares respectively.

Stock change

From Mcglaughlin's listing in the United States for more than 4 months, its major shareholder, MaxproHoldingsLimited and EverKeenHoldingsLimited of Sequoia Capital, decided to sell about 117 million shares of Mcglaughlin common stock at a price of $1.14 / share, Sequoia Capital to account for about $100 million.

This figure exceeds the Sequoia Capital initially invested 80 million U. S. dollars to control Mcglaughlin's investment.

After last year's IPO, Mcglaughlin's Sequoia Capital represented 62.8% of its stake in.

After a large amount of cash, Sequoia Capital held a 33.2% stake in Mcglaughlin, but it is still Mcglaughlin's largest shareholder.

Sina bought about 76 million 986 thousand and 500 shares of Mcglaughlin and invested about $66 million. About 40 million 519 thousand and 200 shares of China's purchase were about $34 million 720 thousand.

After the completion of equity trading, Sina holds 19% stake in Mcglaughlin and China holds 10%.

Each takes what he needs

Mcglaughlin's change of equity is a paction that needs everything.

Sequoia Capital Invested in Mcglaughlin's successful completion of the listing and successfully introduced new shareholders at the same time, not only recovered the initial cost of investment, or even net profit of $20 million.

Sina successfully entered the field of electronic commerce with the investment of 66 million dollars.

Looking forward to consulting CEO LV Bo Wang believes that the price of sina's acquisition of Mcglaughlin is more appropriate. As the first B2C company to list in the US, Mcglaughlin issued a price of 11 US dollars, but due to litigation, Mcglaughlin's share price went down all the way.

Mcglaughlin's business profit margin is relatively high, which is a good choice for Sina's layout of e-commerce.

Analysts believe that Mcglaughlin will benefit from Sina's traffic realisation in the future, pforming Sina users into their own e-commerce users.

In addition, Sina's platform advantage will also effectively reduce Mcglaughlin's advertising investment costs.

Earlier, Mcglaughlin has said that the sharp increase in advertising during the Spring Festival has had an impact on its profit decline.

China's trend is a sportswear brand enterprise, which is Kappa and

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1+1+1>3?

While announces the change of ownership, Mcglaughlin also announced the fourth quarter performance in 2010.

Its net operating income in the fourth quarter of last year was $64 million 200 thousand, an increase of 5.7% over the same period last year, and net profit of $1 million 100 thousand, down 61.7% from the same period last year.

From the 2010 annual performance, net profit reached US $4 million 400 thousand, down 38.4% from the same period last year, and gross profit reached US $94 million 900 thousand, up 17.7% compared with the same period last year, but the gross profit margin dropped 3 percentage points over the same period.

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Mcglaughlin said that the main reason for the decline in gross profit margin was the increase in the proportion of net sales in net operating income, and the increase in the income of the third party brand, but the gross margin was lower than that of its own products, and the discount to franchisees increased.

Despite its poor performance in the fourth quarter of last year, Sina shares rose 10% on Tuesday, thanks to the joint purchase of Mcglaughlin and 29% by Sina and China.

Analysts pointed out that Mcglaughlin's biggest problem is investment in FOTILE strong, management is not dominant, strategic investors may increase Mcglaughlin's decision-making swing.