Open business day-to-day

Chapter 436 Capital Increase and Share Expansion
February NO.18, under Lin Rui's proposal, SMIC's first shareholder meeting in 2013 was held in Shanghai.

As a leading company in the domestic chip industry, every move of SMIC can attract strong media attention, and this time is obviously no exception.

Not to mention, SMIC has gone from bad to worse over the years, and its situation has become more and more embarrassing. As the top chip manufacturing company in China, it can only be regarded as second-rate in the world.Not to mention leading the development of the domestic chip manufacturing industry, it has problems even maintaining its own survival.

In this case, except for the state-owned enterprises that have no choice but to take over, everyone can't avoid it.

Under such circumstances, Lin Rui, a legendary young man and the richest man in China, suddenly took over.

There are different opinions about his actions after taking charge of SMIC. Whether it is media news, economic experts, or various entrepreneurs, they have made a lot of guesses and evaluations.

There are all kinds of things, and I want to see how he can take the helm of SMIC and reverse the current decline of SMIC.

Now, a few months after taking over the offer, Lin Rui's first big move finally came amidst everyone's anticipation and curiosity.

Whether it's the media, people in various industries, or some boring netizens, they are all interested and curious about it.

Ever since, on the day of the board meeting, all the major domestic media gathered, not only the mainstream media from various provinces, but even CCTV sent a special news team to report on this matter.

If there are any major benefits, it would be no surprise that it would be reported on CCTV news.

When the external hype is raging and boiling.

In fact, the final result of this board meeting has been decided long ago. Lin Rui sent people to communicate with the major shareholders a month or two ago, and reached a consensus on some matters.

This board meeting is just a process.

Subsequently, the board of directors was officially held, and there was no surprise. Under the nomination of Lin Rui, Zhang Rujing, who had been away from SMIC for more than three years, returned again and became the chairman.

Liang Mengsong, who has made great contributions to TSMC and Samsung Semiconductor, was also successfully elected as the executive director and CEO of SMIC, becoming the second person in SMIC and the implementer of actual policies.

In the future, there will be Zhang Rujing and Liang Mengsong, two industry giants, who will jointly take charge of SMIC.

……

When the news spread to the outside world, it immediately caused an uproar in public opinion.

Zhang Rujing was better, although it was unexpected.However, as the founder of SMIC, he had no choice but to leave, and now he is invited to come out again, which is also understandable.

Liang Mengsong is beyond everyone's expectations. As a general of TSMC, he has promoted the development of Samsung Semiconductor and made great contributions to Samsung.

At present, he is definitely a red-hot figure in the global semiconductor industry.

Samsung even treats him like a baby.

Unexpectedly, without making a sound, Lin Rui poached such a character from Samsung, which surprised and delighted the media.

Compared with the current management of SMIC, the combination of these two is definitely a surprise.

Just look at their resumes, not only Lin Rui is optimistic about them taking the helm of SMIC, but even the media and industry people who have received the news are also optimistic.

Many people are beginning to look forward to the future of SMIC.

……

The big news of the day was not limited to this. In order to invite Zhang Rujing and Liang Mengsong to take the helm of SMIC, Lin Rui inevitably made some promises, such as fully delegating power and not interfering in the company's specific operations.

Most importantly, it is about funding.

The semiconductor industry is an asset-heavy industry, and it is a very money-burning industry.If you want to develop and keep up with the world's most advanced technology, you can't do it without funds.

Moreover, the funds needed are not small, but astronomically large.

A few months ago, Star Technology Group invested US$15 billion in SMIC.

That sounds like a lot, and it is.

However, in the semiconductor industry, it can only promote the development of SMIC, and it is obviously not enough to catch up quickly.

In terms of talents, the two industry giants have their own methods.In terms of funds, Lin Rui needs to worry about it.

Fortunately, the other shareholders of SMIC are mainly state-owned enterprises, not private companies based on interests, and they also hope to promote the development of the domestic semiconductor industry.And there is no shortage of funds.

Therefore, after a period of communication, Xingkong Technology Group reached an agreement with the majority of shareholders to carry out another round of capital increase and share expansion for SMIC.

To expand SMIC's cash flow, it has sufficient ammunition and development funds.

However, according to SMIC's development plan, the amount of capital required is a bit large, and there are still some disputes about the amount of capital contributed by each shareholder.

Although it is easier for state-owned enterprises to find money and get loans from banks, the funds they face are also subject to stricter audits and are not as flexible as private enterprises.

Although the capital increase and share expansion were agreed, there was still a lot of controversy over the amount of capital contribution. Everyone was picky, and it was not so easy to get them to pay quickly.

As the largest shareholder of SMIC and not short of money, Lin Rui naturally didn't want to get too entangled in these trivial matters.

For this capital increase and share expansion, SMIC issued 60% of its shares at a valuation of US$40.00 billion, raising US$40 billion.

After the financing, SMIC's market value will reach tens of billions of dollars.

Since many companies felt that the amount of financing was too large and did not want to pay more, Lin Rui directly took the remaining amount as it was ordered.

The other shareholders have raised a total of one billion US dollars for the 40 billion US dollars of funds, and the remaining 30 billion US dollars have been fully subscribed by Xingkong Technology Group.

After this capital increase, Star Technology Group's shareholding in SMIC will increase again.

Xingkong Technology originally held 43% of SMIC's shares, but this time it issued an additional 40% of the shares. These shares were diluted by 25.8%, leaving [-]%.

For the additional 40% of the shares, Xingkong Technology Group invested 30 billion U.S. dollars and subscribed for 30% of the shares, and only 10% fell into the hands of other shareholders.

Adding the two together, after this capital increase, Xingkong Technology's shareholding in SMIC will reach an astonishing 55.8%, already occupying a controlling position.

At the board meeting, this matter was formally resolved.

When the news came out, public opinion immediately boiled.

First, the re-election of SMIC's board of directors, the reorganization of the management team, and the sky-high financing of US$40 billion were all sensational news.

Both put together, let alone.

Behind SMIC's coaching change and sky-high price increase, many media and industry insiders realized that SMIC's naivety has indeed changed.

With the official holding of SMIC by Xingkong Technology Group, it means that SMIC's internal struggle for leadership and internal chaos for several years have officially come to an end.

With Xingkong Technology Group, the backbone and controlling shareholder, with the industry giant at the helm, there are still nearly 60 billion US dollars in liquidity in hand.

SMIC was finally able to let go of its burden and move forward lightly.

This incident even made it to the news broadcast that day.It took 2 minutes to introduce SMIC and the significance of this event.

After this incident, the Xingkong Technology Group, which was already famous and eye-catching, once again demonstrated its tyrannical strength.

The Xingkong Research Institute, which is expanding its enrollment, has seen a huge increase in the resumes received during this period.

Lin Rui, on the other hand, kept a low profile again.

(End of this chapter)