China's largest Coke bottle maker general manager resigns today

Zhuhai Zhongfu is the largest supplier of PET bottles and PVC labels for the production of "Two Music" (Coca Cola, Pepsi Cola) in Southeast Asia. Its PET bottles have a domestic market share of 60%. On October 22, 2007, the CVC Asset Partner (hereinafter referred to as CVC), the second largest private equity fund in Europe based in London, successfully acquired 29% of Zhuhai Zhongfu from the former majority shareholder Zhongfu Group. This transaction with a cost of RMB 1.65 billion made CVC the largest shareholder of Zhongfu Zhongfu. Zhongfu Group still holds approximately 5% of Zhuhai Zhongfu after the sale, becoming the second largest shareholder.
On December 18, Huang Zhaohui, general manager of Zhuhai Zhongfu Industry Co., Ltd., the largest Coke bottle manufacturer in Southeast Asia, formally resigned, which means that the company’s founder Huang Lefu family has lost its right to speak on the board of directors.
Zhu Lizhong, secretary of the Board of Directors of Zhuhai Zhongfu, said in a telephone interview with Caijing that the reason for Huang Zhaohui’s resignation was that he would return to Zhuhai Zhongfu’s shareholder Zhuhai Industrial Group Co., Ltd. (hereafter referred to as Zhongfu Group). The successors are still being identified.
The share purchase was the second time that CVC has publicly stated its investment project in China following the acquisition in October 2006 of an 85% stake in Jixiang Wood, which mainly produces fiberboard and wood flooring. After the acquisition of Jixiang Wood, CVC did not intervene in the company's daily operations; after acquiring Zhuhai Zhongfu, it was different. On the acquisition day, CVC announced that it will send more senior executives to participate in Zhuhai Zhongfu's operations.
On November 12, 2007, Zhuhai Zhongfu New Board of Directors was established. Among them, directors from CVC (excluding independent directors) accounted for three-fourths, supervisory committees accounted for two-thirds, and only one seat was reserved on the board of directors. Huang Zhaohui, the deputy general manager of the original Zhuhai Zhongfu, was the eldest son of Huang Lefu, chairman of Zhufu Zhongfu. He is 35 years old.
Huang Lefu is one of the founders of Zhuhai Zhongfu. He is 66 years old this year. He founded the township enterprise "Cangzhou Zhongzi Rich Bottle Factory in Xiangzhou District, Zhuhai" in December 1985, mainly producing various plastic beverage containers. At the beginning of 1988, Huang performed a joint-stock reform of the company, and at the time raised 207,000 shares of 100 yuan per share. In 1990, the factory was formally restructured into "Zhufu Industrial Co., Ltd., Zhuhai Special Economic Zone", and will increase its capital and share capital after two years. In December 1996, Zhuhai Zhongfu was listed on the Shenzhen Stock Exchange.
Due to the sequela of stroke, Huang Lefu gradually withdrew from the first-line management position from around 2005, and Huang Zhaohui, who had been responsible for the development of PET beer bottles, was also pushed to the front during this time. In April 2007, CVC acquired Zhuhai Zhongfu at the most crucial period. Huang Lefu also repeatedly told the media: “CVC people only know about investment, do not understand the packaging industry, will not do industry, they will not move our management, they also want to invite I will be a consultant."
However, the situation after the incident is obviously far from the above.
Due to the CVC’s entry into Zhuhai, the transfer price is nearly twice that of Zhuhai Zhongfu’s net assets, which is approximately 50 times PE, which is considered by the investment bank community as a high premium purchase. In addition, Zhuhai Zhongfu's board members are dominated by capital market participants from CVC, including the “red-chip father,” Liang Bojun, who had previously contacted the Bohai Industry Fund several times. Some analysts believe that private equity will enter Zhuhai Zhongfu, aiming to create an industry merger. platform. The above statement was denied by Zhu Zhizhong, Vice Chairman of Zhuhai Zhongfu. He once told the Caijing reporter that Zhuhai Zhongfu would not implement overseas mergers and acquisitions because the domestic market is large enough to hold on to the domestic market share it deserves. As far as the domestic market is concerned, Large-scale acquisition is also unlikely to be implemented. Zhuhai Zhongfu is now the domestic leader in terms of scale and share. Re-mergers and acquisitions may hit the Anti-Monopoly Law, making it difficult to obtain approval.

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