The hottest Kodak made a six point response to the

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Kodak made a six point response to the full withdrawal of lucky event

Kodak decided to get rid of the relationship with lucky. They sold 20% of lucky's shares, which were originally exchanged for $45million plus $55million in other assets, at a price of $37million

sell at a low price

according to a 20-year cooperation agreement between lucky group and Kodak if the sealing gasket broke on October 23, 2003, Kodak exchanged cash and other assets with a total estimated amount of about US $100million for 20% shares of lucky film

20% of lucky's shares were sold to Kodak in two parts, of which 13% of the shares were purchased by Kodak with us $45million in cash, equivalent to about 8.30 yuan per share, and the other 7% of the shares were exchanged for assets, and the price was still 8.30 yuan per share

but up to now, Kodak immediately sold all 20% shares from lucky to a third-party company Guangzhou Chengxin Venture Capital Co., Ltd. at a price of $37million. Kodak will also receive a patent license fee of $9million paid by lucky to Kodak, which will be paid in three installments within a year

whether based on the current share price of rakay of 14 yuan or the amount of cash or assets paid by Kodak, the selling price of $37million is a loss business for Kodak

This also shows that the development of valves is very rapid

Kodak dispels doubts

why Kodak made this decision? Kodak's explanation has six reasons

first of all, the fundamental premise for Kodak and lucky to sign a package of cooperation contracts is based on the fact that China's A-share stock market has not achieved full circulation. Since the situation of full circulation will be formed after the share reform, the follow-up implementation of Kodak and lucky cooperation contract will lose the policies, regulations and regulatory basis at the beginning of signing, so it is difficult to continue to implement

secondly, in view of the fact that Kodak acquired 20% equity of lucky with a high premium agreement, any plan on the joint participation of both parties in the share trading reform will involve a complex valuation and negotiation process, and it is difficult for both parties to reach an agreement. Based on the interests of shareholders and in cooperation with the split share structure reform of government owned enterprises, the two sides have accelerated the construction of a batch of rare earth deep processing projects and made such a decision

third, Lucky Film Co., Ltd. hopes to achieve long-term development and certainly cannot continue to rely on the traditional image market. In view of the direction of Kodak's strategic transformation, Kodak will not inject new assets into lucky Co., Ltd. If lucky group injects excellent assets into lucky Co., Ltd., Kodak's equity in lucky Co., Ltd. will become an obstacle. Therefore, if Kodak withdraws from lucky Co., Ltd., it will actually create space and opportunities for possible future cooperation between Kodak and lucky

fourth, if Kodak participates in rakay's share reform, it will not only fail to achieve the original intention of rakay group to complete the split share structure reform as soon as possible, but also undermine the sustainability and integrity of the package of cooperation projects between rakay and Kodak. In order to complete the joint-stock reform of state-owned enterprises as soon as possible, Kodak suggested that lucky group and third-party investors buy back the 20% equity of Lucky Film held by Kodak. Then the share reform plan of lucky group and third-party investors can not only significantly reduce the complexity of negotiations between the two sides, but also lucky group can then flexibly formulate the share reform plan

fifth, if the cash and assets of the project and two equity transfers are used, Kodak is indeed a loss, but the joint-stock reform of state-owned enterprises is the general trend. Kodak must support rakay's share reform and future restructuring, and it is Kodak's consistent commitment to help improve the overall level of China's imaging industry

sixth, in the previous stage of cooperation, Kodak did get a lot. Bringing the world's best into China is Kodak's consistent business philosophy based on China. It is with this philosophy rooted in China that we get the love of the government and the people

restructuring business pressure

the above six reasons are the reasons given by Kodak, but there is another reason. Kodak will complete the restructuring plan in the fourth quarter of this year. In Kodak's restructuring and transformation plan, the new president of Kodak, Fang Xi, said that Kodak's core business after the transformation will be positioned in the consumer products business based on digital image and the graphic image business, both of which are based on Kodak's strength in the cross technology of image science and material science

Ye Ying, President of North Asia, explained Kodak's business priorities, which can be matched with the different materials tested. Kodak's main business will be divided into three parts: the first is film product business. The second is the consumption of digital imaging business, which includes digital cameras, printers, etc. The third is the image and text business, including Kodak's newly launched Xiamen digital printing plate factory and document scanner. This part will be Kodak's main market in the future. By 2010, China will become the world's second largest image and text market, which is far larger than the traditional image industry. Therefore, Kodak chose this industry as its foothold for transformation

at the same time, ye Ying also said that Kodak would turn into a B to B (company to company) Company in the future, far away from end consumers

Gartner tangyinghao, the world's authoritative market analysis agency, said that in the field of digital cameras, neither Kodak nor lucky is a mainstream manufacturer. Even Kodak's transformation to digital camera market has passed its peak, and the time of the highest profit growth point has passed. Therefore, the direction of their two manufacturers, especially Kodak, in the future transformation should be the industrial imaging industry market

it can be seen from the above reasons that the traditional film product business of Kodak and lucky is exactly the business Kodak is not optimistic about and will give up. The transformation in the fourth quarter is imminent. Kodak will continue to entangle with lucky and will not make more profits

analysts believe that Kodak turned loss into profit by selling business in the third quarter. The $46million obtained this time can help Kodak achieve the goal of not too ugly financial statements in the fourth quarter again. In addition, Kodak has made huge profits in China through the technology for market cooperation with lucky, so Kodak had to make the above decision

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