Open business day-to-day

Chapter 424 A Trip to Hong Kong
Time passed quickly. After so many days of negotiations and contacts, Weiyang Technology finally reached an agreement with Yahoo.

NO.12, the two parties officially announced that Weiyang Technology will take over 41% of Alibaba's equity from Yahoo at a price of US$12 billion.

Compared with a few months ago, Ali repurchased 71% of Ali's shares in Yahoo's hands for US$23 billion. The purchase of 41% of Ali’s equity for US$12 billion has a certain premium.

However, this is normal, otherwise why did Yahoo agree to this deal.

After the transaction, Ali's shareholding structure is as follows.

SoftBank still occupies the throne of the largest shareholder with a 28.5% stake.

With an 18.1% stake, Xingkong Technology Group is firmly seated as the second largest shareholder.

Yahoo lost its position as the third largest shareholder, and Weiyang Technology came from behind and directly became the third largest shareholder of Ali with a 12% stake.

The remaining shareholders were little changed.

Ma Yun is still the fourth largest shareholder of Ali with an 8.9% shareholding.

Yahoo is the fifth largest shareholder of Ali with a 5% shareholding.

Cai Chongxin slipped to the sixth largest shareholder of Ali with a 4.1% shareholding.

Ma Yunjia Cai Chongxin, together with the company's founding team and the option pool established in the company, still hold 25% of Ali's shares.

Singapore Investment Fund, Temasek, Fidelity... several investment companies, the shareholding in Ali remains unchanged at 6.5%.

CITIC Investment, the Pension Insurance Fund, and the National Venture Capital Fund spent US$14 billion a while ago, at a valuation of more than US$280 billion, to acquire a 4.9% stake in Ali and become a shareholder of Ali, and the shares also remain unchanged.

Only Yahoo has changed, from Ali's third largest shareholder to Ali's fifth largest shareholder.

Weiyang Technology has become Ali's third largest shareholder from an outsider.

This transaction caused a lot of noise in the media.

Even Lao Ma, seeing that Lin Rui made another move to take Ali's equity, was not calm anymore.

Lin Rui made two moves, first using Xingkong Technology Group to acquire 18.00% of Ali's equity, and then using Weiyang Technology to acquire Ali's 12.00% equity.

Ok!

The addition of the two directly occupies 30.00% of Ali's equity, which is equivalent to the largest shareholder.

Although, it is nominally taken by two companies.However, these two companies are both owned by Lin Rui, and there is a big difference between being held by the same company.

In contrast, Lao Ma only holds [-]% of Ali's shares, which is less than one-third of Lin Rui's.

In this case, Lao Ma was also a little worried, and even a little suspicious, whether Ali belonged to his Lao Ma or Lin Rui in the future.

There was also a lot of discussion about this in the media, speculating whether Lin Rui's intentions were purely financial investment or other purposes.

Many people thought that Lin Rui had just established an e-commerce platform "Huizhong Mall" recently, and obviously wanted to enter the e-commerce business, so they inevitably started to think again.

Even the old horse is the same, is the wolf behind the tiger.Just after Yahoo was driven away, another even more powerful one came.

Compared with Yahoo, who doesn't know much about the country's conditions, Lin Rui, as a domestic Internet leader, is obviously much more powerful. As long as he makes a move, he will definitely not be so easy to pick up.

It's a pity that Weiyang Technology and Yahoo's contact and confidentiality measures are too good. When he gets the news, the negotiation has entered the late stage.

At that time, the second largest shareholder and the third largest shareholder were unable to stop the equity transaction.

Otherwise, there is still room for relaxation.

The old horse sighed softly. It seems that if he takes some time, he will pay a good visit to Lin Rui to find out his intentions.

Is it a pure financial investment, or do you want to get involved in Ali.

The last time Xingkong Technology Group became a shareholder, it promised to only make financial investment and not to intervene in the company's business, otherwise he would not be able to cooperate like this.

Now I can only hope that Lin Rui keeps his word.

In fact, he thought too much, and the media also thought too much.

Lin Rui really just thinks that Ali is very promising, and is simply a financial investment.

He is too busy with his own company affairs, and he is very lazy, so he has no energy to worry about Ali.

In fact, Weiyang Technology’s purchase of equity this time not only contacted Yahoo, but also contacted Softbank.

Unfortunately, Yahoo only agrees to sell 12.00% of the shares at most, and retains 5.00% to occupy a board seat.

Not to mention Softbank, unlike Yahoo, Lao Sun is very optimistic about Ali's future, and he simply rejected the contact with Weiyang Technology.

Otherwise, the Ali equity that Weiyang Technology took over this time is not just 12.00%.

……

For this transaction, the domestic media discussion is not limited to this.

Everyone has different opinions on Ali's future. Some say that Lin Rui has lost money, while others say that Lin Rui has made money.

But for Yahoo, which sold its shares, the opinions in the media are very consistent, and they all feel that they have made a profit.

Thinking about it, I invested a billion dollars seven years ago. Through two transactions, I have recovered 110 billion dollars, and the return on investment is as high as [-] times.

Moreover, Yahoo still has a 5.00% stake in Ali, which can be said to be a big profit.

As for whether Alibaba's equity will be more valuable in the future, and whether Yahoo is selling at a loss now, few people care.

In seven years, more than [-] billion US dollars in return, what else do you want!
Another hot topic in the media is the debate about whether Ali is a foreign-funded enterprise or a domestic-funded enterprise. Now there is finally a reliable answer.

Before Lin Rui entered the game, more than 70.00% of Ali’s equity was in the hands of foreign investors, and Lao Ma and the founder team only held a few dozen points of equity.

Although it has management rights over Ali, it does not look like Ali is a domestic company.

After Lin Rui intervened, he controlled 30.00% of Ali's equity through direct and indirect means.

In addition, the management team headed by Ma Yun holds 20.00% of Wu's equity.

In addition, CITIC Investment and National Venture Capital Fund, which have just entered the market, hold [-]% of Ali's equity.

Domestic capital and individuals have directly held 60.00% of Ali’s shares, exceeding the 40.00% of foreign capital.

Ali can already be said to be a domestic-funded enterprise, or a joint venture with a partial domestic capital.

……

As we all know, due to national conditions, there were very few domestic companies engaged in venture capital in the early days, resulting in the major shareholders of major Internet companies today being foreign capital.

Whether it is Tencent, Baidu, or Ali, Sina... After careful study, the shareholding of foreign capital exceeds 60.00%.

It is said that he is a foreign-invested company, and his business is all in the country, and he usually shows himself as a domestic-funded enterprise.It is said that he is a domestic capital, and most of the equity is in the hands of foreign capital.

On the Internet and in the media... people often discuss this topic, and they are full of emotion.

Seeing this kind of shareholding structure, many people even feel uncomfortable. It turns out that they are making contributions to foreign capital by doing all kinds of buying, buying, buying, buying, buying, and so on.

More people are scolding the domestic investment companies at that time for being blind to gold and jade, and missing such a good company.

Now, as one of the representatives of domestic Internet companies, the domestic e-commerce giant Ali, the domestic holdings of shares exceeds that of foreign investors for the first time, and it is conceivable that it has received attention.

Once this incident spread, it immediately became the focus of media discussion.

Many people are discussing the significance of this incident, and even took Weiyang Technology, a domestic Internet company, as an example.It means that the domestic Internet industry has gradually changed from the era of foreign capital to the era of domestic capital.

It is also for this reason that Weiyang Technology's acquisition of Ali's equity this time has a good overall evaluation in China.Except for some media's sour remarks that Yahoo cashed out so much cash, there is not much negative news.

Of course, ignoring Lao Ma and some news media, and worrying about Lin Rui's meddling in Ali's affairs, this transaction can be described as a happy event for all parties.

However, the price Lin Rui paid to win these shares of Ali is not insignificant.The selling price is 41 billion U.S. dollars, which is definitely an astronomical figure in today's country.

Although Weiyang Technology can get so much cash, it is naturally impossible to get all of it out of its own pocket, otherwise Weiyang Technology will not be able to develop.

This time, Weiyang Technology joined forces with ICBC, CCB and ABC to take over the equity in Yahoo, and applied for a loan of US$30 billion with Ali's equity as collateral.

The remaining US$[-] billion is the real investment amount of Weiyang Technology.

With the current financial situation and scale of Weiyang Technology, there is no reason for these banks to disagree, and the transaction was successfully completed.

While the outside world was still discussing this matter, Lin Rui came to Hong Kong in a low-key manner.

His visit to Hong Kong this time is mainly about some investment matters, and he wants to have further exchanges with Chen Fan.

In addition, Weiyin International Investment Co., Ltd. now holds 20.00% of SMIC's shares and has been promoted to the largest shareholder.

Holds 20.00% of BOE's shares, surpassing the Imperial Capital SASAC and Luzhou SASAC, and was promoted to the largest shareholder.

Microbank is now mainly absorbing the stocks of these two companies.

Recently, Xingkong Technology Group is also in contact with these two companies to discuss capital injection.

As soon as he got off the plane, Bai Xiaobing knew he was coming and made the same phone call. The two made an appointment to meet at night.

Sitting in the company's pick-up car, Lin Rui went directly to Weiyin International Investment Company in Central. Chen Fan and the company's staff were already waiting here.

Say hello casually, say a few words, let the staff disperse, and come to the small conference room with Chen Fan.

After chatting for a while, Chen Fan began to introduce the company's current financial situation.

He cleared his throat, sat upright, and spoke slowly.

"Mr. Lin, since the establishment of Weiyin International Investment Company, you and the headquarters have invested a total of 98 billion yuan, converted into Hong Kong dollars, 110 billion."

"Among them, the acquisition of Ali's equity cost 20 billion Hong Kong dollars. These shares, together with the financial leverage used, have been transferred to the Star Group headquarters, and the company's total funds have been reduced by 20 billion Hong Kong dollars."

"There is also the acquisition of the shares of Spreadtrum and Di Ruike. These shares have not been directly transferred to the Star Technology Group. Like other shares of the group, they have been acquired at a high price."

"In this transaction, we actually earned 19 billion Hong Kong dollars."

Lin Rui is naturally aware of this matter. Xingkong Technology Group spent 25 billion US dollars to fully acquire Spreadtrum and Di Ruike.The nearly 30.00% shares of two companies absorbed by Weiyin through the open market were not transferred to Xingkong Technology Group in vain.

It was also traded under the name of Xingkong Technology Group according to the purchase price.

Through this acquisition, Weiyin’s capital has not decreased but increased, and it has also earned 19 billion Hong Kong dollars.

However, this kind of thing is equivalent to Lin Rui's left-handed and right-handed transfer of Xingkong Technology's funds to Weiyin's account.

However, it is not without benefits. Xingkong Technology Group used leverage to acquire the two companies, and the actual investment did not amount to 25 billion US dollars.

Weiyin sold these stocks but received real money, which is equivalent to increasing the company's cash flow.

Chen Fan went on to say: "The expenditure was 20 billion, and the recovery was 19 billion. After these two transactions, the total amount of funds of the company has not changed much, and it is still more than 110 billion."

"We currently hold 20.00% of SMIC's shares. Most of SMIC's tradable shares have already fallen into the company's hands."

"SMIC's market value has also risen from more than US$30 billion at the beginning to US$45 billion now."

"The company's average holding cost is around $41 billion."

"Holding these stocks cost one billion US dollars and exchanged them for 75 billion Hong Kong dollars."

"The company also used leverage to attract funds this time, and the actual capital contribution of Weiyin was only HK$22 billion."

Seeing Lin Rui nodding, Chen Fan went on to introduce: "We currently hold 20.00% of BOE's shares."

"This operation is carried out in A-shares, and most of BOE's floating shares have also been in our hands."

"Since buying BOE stocks in March this year, BOE's market value at that time was around 250 billion yuan. After half a year, BOE's current market value has been pushed up to 360 billion yuan."

"Our average holding cost is around RMB 310 billion."

"Absorbing these stocks of BOE cost about 80 billion yuan, and leverage was also used. The actual capital contribution of the company is around 25 billion yuan."

"During this period, according to your instructions, the company has absorbed some stocks of listed companies in the mobile phone industry chain, and it also spent about one billion Hong Kong dollars."

"At present, there are more than 40 billion Hong Kong dollars in cash in the company's account."

Lin Rui was quite satisfied.

"Good, well done."

He nodded as he said, "There are still things to explain to you."

Chen Fan sat up straight and said seriously, "Mr. Lin, please tell me."

Lin Rui smiled and said, "Don't be so serious, just treat it as an ordinary communication."

Seeing that Chen Fan was still sitting upright, Lin Rui shook his head, and continued: "With the rise of our Weiyang Technology, the development momentum is getting better and better, and Tencent's stock price has been getting lower and lower recently."

"Especially in the last two months, Weiyang Technology's financing has set a record. It is second to none in domestic venture capital, and the number of WeChat users has also begun to grow on a large scale. I looked at the data two days ago, and the scale of WeChat's domestic users has surpassed that of Tencent. WeChat."

Chen Fan was slightly surprised and said, "The number of WeChat users in China has grown so fast, surpassing that of WeChat. No wonder Tencent's stock price has been falling recently."

Lin Rui nodded and said, "Isn't it a good opportunity for Tencent's stock price to drop?"

Chen Fan said: "Boss Lin, what do you mean?"

Lin Rui smiled and said, "Take the opportunity to buy into Tencent's stock."

Chen Fan was a little stunned: "Absorb Tencent's stock, is it a competitor with us?"

(End of this chapter)