Encourage Mergers and Acquisitions of State-owned Enterprises by Foreign Investors
In the process of foreign investors' M&A and state-owned enterprises' grafting transformation, state-owned commercial banks, upon approval, may adopt flexible measures to dispose their non-performing assets and independently reduce the debt interests not recorded in the balance sheets owed by loan enterprises.
Encourage foreign capital to participation in restructuring and reorganization of state-owned enterprises a variety of ways such as M&A and acquisition. Relevant policies concerning activities of drawing foreign capital into the asset restructuring and disposal of financial asset management companies are available for foreign M&A. Where the ratio of foreign capital reaches or exceeds 25%, relevant policies on encouraged foreign investment projects shall be followed.
Foreign investment funds are allowed to, in accordance with current international rules, acquire the non-performing loans and equities of financial assets management companies and state-owned commercial banks, and conduct restructuring and disposal over the assets owned by them.
In case of foreign investors' M&A and state-owned enterprises' grafting transformation, the former state-owned enterprises' historical tax arrears which are indeed difficult to return, may be exempted in accordance with the provisions upon the approval by the competent departments.
The foreign-funded enterprises established subsequent to foreign investors' mergers and acquisitions of state-owned enterprises enjoy the same policies with state-owned enterprises in terms of economic downsizing, personnel placement and re-employment.
In case of foreign investors' mergers and acquisitions of state-owned enterprises, its assessment of the assets may be conducted in the light of the international assessment measures. The asset prices shall be determined according to the evaluation result.