Policies on Encouraging Transfer of Property Rights of State-owned Enterprises for M&A
The transfer price of state-owned assets (properties and shares) is to be reasonably determined. Comprehensive assessment of the state-owned enterprises is to be conducted, on the basis of the assets assessment results, with simultaneous reference to the market situation of supply and demand, corporate profitability, resettlement of workers, and the market price of similar assets. Where new technology reform projects are set up or projects under construction are launched after M&A by extra-territorial capital or private capital and restructuring of enterprise, one-time payment is realized for acquisition of state-owned property rights or assets as a whole, and the expenses for resettlement of workers can be paid by the receiving company of the restructuring enterprise, appropriate preference can be granted to the state-owned property rights or assets transferring price, upon approval of the leading group of the state-owned enterprise reform at the same level.
In case of acquisition of restructuring enterprises by extra-territorial capital or private capital, where all the workers are received or the number of the workers received exceeds that of the enterprise before restructuring and the employee resettlement expenses are made up by the new enterprise since the assets of the restructuring enterprises are insufficient to pay for the employee resettlement expenses, within certain years since the production date of the new enterprises, offset can be realized through the financially retained parts at the same level of the newly added tax at certain ratio as reward and through reduction of administrative charges.
Where the transferee which assumes the historical local tax arrears of the state-owned enterprises merged indeed has difficulty in making a supplementary payment, a supplementary payment plan can be formulated and supplementary payment in installments and in different years is allowed.
The restructuring enterprises with participations of the creditor bank and financial asset management companies, for debt restructuring through the package, discounted buy-back, carry out debt reorganization and solve the problem jointly and properly through packing, discount buy-back, reasonable shrinking, appropriate concession and other measures. In case of separation and restructuring of an enterprise, the new and old enterprise should reasonably share the debts, in the principle of being favorable to attract investors and development of the new enterprise after separation.
In case of acquisition of restructuring state-owned enterprises as a whole by extra-territorial capital or private capital, the full-time primary and secondary schools and public security agencies established by the former enterprise shall be taken over by the local government. The hospitals, logistic service departments, and other social function bodies established thereby shall separate and conduct restructuring for operation, be market-oriented, operate independently, and take on full responsibility for their own business.
Where the extra-territorial capital and private capital participated in restructuring and reorganizing of state-owned enterprises are in line with the national industrial policy and the key developed industries in our province, discount loan support may be granted to the newly established basic construction and technological transformation projects and appropriation support may be granted to technological innovation products, in accordance with the relevant provisions.