My 1999

Chapter 1053 Exchange Conditions [Supplementary Chapter]

Song Yunshan subconsciously leaned back, a hint of understanding flashed in his eyes.

"Mr. Xu is really good at calculating."

"Mr. Song, the business exchange is a win-win situation for both of us. From now on, we won't have to compete in the two major industries of supermarkets and cement."

Song Yunshan: "Hua Run and Xu compete in more than just supermarkets and cement industries."

Huarun Snow Beer is second only to the beer business of Kanghua Group.

Huarun Yibao is also one of China's leading bottled water brands, competing with Kanghua's Tianshan mineral water.

Huarun Wufeng is a comprehensive food group integrating food research and development, production, processing, wholesale, retail, transportation and international trade.

The main business includes three major categories: meat business, aquatic product business, and comprehensive food business. The business area covers Hong Kong, mainland and overseas markets.

It is a competitor of the Feng Collection Group.

Hualun Land is a competitor of Taihua.

It can be said that, except for electricity, medicine and gas, most of Huarun's businesses compete with Xu's businesses, including finance.

"I have always respected Hua Run, so I don't want to see you and I get into trouble because of normal business competition.

Therefore, if we can reduce competition in an industry, it will be a good thing for both of us.

What did Mr. Song think? "

"Mr. Xu is right, but we hope to exchange Snow Beer for Tianshan building materials."

Xu Liang smiled faintly.

“Tianshan Building Materials’ debt ratio is very low, and its net profit is as high as 20.4%. Based on a price-earnings ratio valuation of 10 times, Tianshan Building Materials’ market value is as high as 20 billion Chinese dollars.

The 2005 Huarun Snow Beer annual report shows that the annual sales of beer are 3.95 million tons, the annual sales are 6.8 billion yuan/HKD, and the profit is 138 million yuan/HKD. The profit is about 30% of Tsingtao Beer.

In the two quarters of 2006, 2.68 million tons of beer were sold, but the net profit did not improve much.

Moreover, Snow Beer’s debt ratio is as high as 60%.

With high debt and low profits, a valuation of 10 times earnings is too high.

Moreover, 49% of the shares of Snow Beer are in the hands of SABMiller.

Taking into account goodwill, Hua Run’s equity in Snow Beer is worth at most 2 billion Huaxia coins.

Does Mr. Song think it is possible to exchange 2 billion Huaxia coins for my 20 billion Huaxia coins? "

Song Yunshan looked at the man in front of him with a smile on his face, and a realization gradually rose in his heart.

"Mr. Xu, what you want to exchange is not only Huarun Wanjia, but also Snow Beer, Yibao Mineral Water and Huarun Wufeng. You want to swallow up Huarun's retail business."

The smile on Xu Liang's face was a little deeper.

"Mr. Song is indeed smart."

Song Yunshan showed a look of anger on his face.

"Mr. Xu's appetite is too big."

"Is it big? It's just that the scale of Huarun's business is too small. If Huarun Supermarket's revenue exceeds 100 billion and profits exceed 10 billion, you and Huarun Wanjia can take away my Tianshan Building Materials."

There was a pause.

"Mr. Song, Hua Run's business is too many and complicated.

There are more than a dozen industries including retail, electric power, semiconductors, industrial compressors, gas, medicine, beer, cement, and finance. You are not number one in any of them.

To put it simply, it is big but not strong.

If I were to take charge of Huarun, I would focus the company's main energy on the three major industries of electricity and gas, medicine, and cement.

Become number one in China first, and then enter the international market.

If there is insufficient funds in the international market, I will continue to reduce the main business of the group.

Whether it is electricity and gas, or medicine and cement.

The rewards of becoming No. 1 in the world are far greater than what you can gain by spanning multiple industries! "

Although it is to pave the way for his own acquisition, half of it is also sincere.

Song Yunshan was silent for a moment.

"Mr. Xu said it lightly, but how easy is it to succeed in the global market?"

"Mr. Song is right, but if you want to make money and achieve amazing achievements in this world, when has it ever been easy?"

Staring at the other party's confident eyes, Song Yunshan was about to refuse.

"Mr. Song, do you know why I came to Xiangjiang?"

As a super rich man in China, Xu Liang's whereabouts are closely watched by many people, and Song Yunshan is one of them.

"For the acquisition of Guangdong Development Bank."

Xu Liang smiled and nodded.

“Currently we have reached an agreement with Guangdong Province.

An acquisition group formed by Standard Chartered Bank acquired 85% of Guangdong Development Bank's shares.

Among them, Standard Chartered Bank holds 19.9% of the shares, Bank of Milan holds 5.1%, Hanhua Group holds 20%, and China National Petroleum Corporation holds 20%. "

Looking directly at Song Yunshan, Xu Liang said slowly.

"The remaining 20% of the equity can be given to Hua Run."

"Where's peace?"

The Standard Chartered M\u0026A group has been pursuing China Guangdong Development Bank for a long time. It has long been known who is involved and how many shares each holds.

"Ping An's target has shifted from China Guangdong Development Bank to Shenzhen Development Bank. What they want is overall mergers and acquisitions, not investment."

Song Yunshan was silent for a moment.

"As Mr. Xu said before, Huarun's business is too complex and it is not suitable for us to continue to expand more business boundaries, so let it go."

Xu Liang said calmly: "What if at the right time, all the shares of Guangdong Development Bank held by Standard Chartered and Hanhua are transferred to Huarun?"

A light flashed in Song Yunshan's eyes.

20% equity and holding are two completely different concepts.

Huarun is a state-owned enterprise, not a private enterprise, and it can hold a controlling stake.

"With Guangdong Development Bank, the top second-tier bank in the country, we can integrate all of Huarun's financial business. Let the financial industry become the core of Huarun's business and pave the way for the development of the entire group."

Song Yunshan admitted that he was moved.

No one can resist the lure of a major bank.

As Xu Liang said, a large bank can provide ample cash flow for the development of its major businesses.

The financial groups and plutocrats in the West have proven this.

"Are you really sure of winning Guangdong Publishing House?"

"I promised Guangdong Province to invest US$3.5 billion here to build a 12-inch chip factory with a monthly output of 100,000 wafers."

Although the news of Hanhua's acquisition of SMIC has not been reported in the newspapers, it is no longer a secret to some top people.

Song Yunshan nodded slowly.

No local government can refuse a high-tech investment of US$3.5 billion, nearly 30 billion Chinese dollars.

GDB sells to everyone, of course to the one with the highest bid.

There is no doubt that Xu Liang, who invested 30 billion, far surpassed Citigroup.

"If I agree, when will you transfer the shares of Guangdong Development Bank to China Resources?"

"Four years later."

"2010?"

"That's right."

After 2010, the explosive period of China's development ended and entered a period of stable growth.

Bank stock returns will slowly decline.

At the same time, it also made Standard Chartered completely give up.

They could never acquire a Chinese national bank.

“Is four years too long?”

"Mr. Song, although Standard Chartered's acquisition of Guangdong Development Bank is an investment, it also shoulders the task of improving Guangdong Development Bank's management level and rate of return. If we just sell the equity as soon as we acquire it.

I'm afraid the Guangdong Province will not look down upon us. If the same thing happens in the future, it will be difficult for Standard Chartered and Hanhua to have another chance.

Therefore, we need time to reshape the management of Guangdong Development Bank.

In the future, when Hualun acquires the bank, what you will get is an excellent bank with a sound system and good returns.

You made a lot of money. "

After Song Yunshan thought for a while, "It's a very important matter, I need to go back and discuss it with the company's management.

However, if we agree, Guangdong Development Bank's equity will have to sign a repurchase agreement. "

Without a contract, he was afraid that Xu Liang would renege on his word.

"Of course no problem.

However, time is tight and you only have two days. "

"Two days is too short."

“The day after tomorrow I will submit the conditions for Standard Chartered’s acquisition of China Guangdong Development Bank.

If you don't agree, we will find a new partner.

So, it’s not that I don’t give you time, it’s that I don’t have enough time either. "Xu Liang said directly.

"The scale of the transaction is so large that two days is too short. Moreover, Huarun is not a company owned by Mr. Xu. Even if I were the CEO of Huarun, I would not be able to make a final decision."

"I believe in Mr. Song's decisiveness and leadership."

After finishing his words, Xu Liang stood up.

"Mr. Song, I've finished what I want to say. Time is tight, so I won't keep you any longer. I'll treat you to dinner after we finalize the cooperation plan.

Then we can open up and have a good chat. "

Song Yunshan stood up and said, "I hope to have this opportunity."

Xu Liang stretched out his right hand and spoke firmly.

"There must be this opportunity."

Song Yunshan was stunned for a moment, then smiled and held his right hand.

He shook it briefly and then let go.

"Mr. Xu, take your leave."

Xu Liang personally sent him to the door.

Watch the black Mercedes-Benz drive away.

Li Jinling: "Mr. Xu, do you think he will agree?"

"Yes, but he may not agree to all our conditions." Xu Liang said slowly.

China Resources Vanguard definitely needs to win.