Yutong Bus, China: management buy-out
Publication date: 1 January 2011
Abstract
Subject area
Corporate governance, privatisation.
Study level/applicability
Masters level programmes, with particular focus on corporate governance, privatisation, and organizational development.
Case overview
Yutong Bus is a real and highly publicized case in China. It is a listed company carved out from a state-owned enterprise (SOE), Yutong Group. Later the management successfully bought out Yutong Group and thus indirectly controlled the company. The deal transformed Yutong Group from a SOE to a private company. The management was innovative in pushing through the management buy-out (MBO), but politically, it created a public outcry about the loss of state-owned assets. The key issue here is the selection of state owned enterprises suitable for privatization and, more importantly, the determination of selling price. In China “the market for corporate control is still lagging behind” (Shanghai Stock Exchange).
Expected learning outcomes
Students would be expected to gain an understanding of recent economic reform in China, Corporate Governance in the Chinese context and wider issues associated with privatization and MBOs.
Supplementary materials
Teaching note.
Keywords
Acknowledgements
This case was prepared from published sources. It was developed for teaching purpose and is not intended to serve as an endorsement, source of primary data, or an illustration of either effective or ineffective management.
Citation
Zhang, Y. (2011), "Yutong Bus, China: management buy-out", , Vol. 1 No. 1. https://doi.org/10.1108/20450621111129645
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited