Chapter 300 Nanfu Battery
As a native of Qilu Province, of course he knows Changyu Wine.
It is considered the number one brand in the domestic wine field.
The petty bourgeoisie of later generations like to show off their boring tastes with wine and Western food.
This is a good investment target.
"Is there anything else?"
Jiang Xiaoyang nodded, "Nanfu Battery is currently the largest alkaline battery manufacturer in China and the fifth largest in the world. Nanfu Battery holds 28.5% of the shares. , 71.5% of the shares are held by Morgan Stanley and Singapore and Dutch banks.
As long as sufficient funds are provided, it is not difficult to acquire. As for the equity of Nanfu Battery itself, it is even easier.”
Xu Liang nodded in agreement.
He happened to know something about Nanfu Batteries.
In the last life, Nanfu Battery was acquired by Morgan Stanley and others. They originally planned to list Nanfu Battery in the United States to make huge profits, but domestic regulations hindered the approval.
In the end, investment banks such as Morgan Stanley had no choice but to sell Nanfu to Gillette. The purchase price was US$42 million, sold for US$100 million, and the resale profit was US$58 million.
In this way, Nanfu changed from a giant in China's battery production industry to a subsidiary of a competitor.
And this competitor is still his loser.
Gillette’s Duracell battery has been in the Chinese market for ten years, but it has never been able to break into the market, and its market share is less than 1/10 of Nanfu’s.
The acquisition of Nanfu not only eliminated its largest competitor.
And we also got a battery manufacturer with an annual profit of 8 million US dollars and more than 3 million sales points. More importantly, we got most of the Chinese market.
Originally, Nanfu's high-quality alkaline batteries have entered the international market, and it was a good time to develop overseas. However, in order to avoid competing for market share with the parent company, Nanfu had to hurriedly withdraw its troops.
Because it cannot directly conflict with Duracell, half of Nanfu's production capacity is now idle.
A company that originally had a great future was mostly ruined.
After seeing Nanfu's information, Xu Liang decided to buy it almost instantly.
Nanfu occupies an absolute dominant position in the market segment, and its brand influence is still deeply rooted in the hearts of the people even before its rebirth.
Absolutely a good company.
Although he already had an acquisition target, Xu Liang still looked at the last target.
“Suguo Supermarket?”
"This is not cheap."
Because Yihaodian began to transform into B2C, he also read a lot of information on domestic retail companies.
Suguo now has nearly 700 stores and dominates Jiangsu Province. Its business covers Anhui, Henan and Qilu provinces, and it is the tenth largest retail enterprise in the country.
If you want to fully acquire it, you will need at least one billion Huaxia coins.
Moreover, they may not sell it.
Xu Liang has little interest in supermarkets. Without them, profits would be too low.
Take Suguo as an example. By the end of 2001, it had 670 stores, including 220 directly operated stores and 450 franchise stores. It achieved sales of 5.2 billion yuan, of which directly operated stores sold 2.54 billion yuan, with a profit of only 62.15 million yuan, franchise store sales were 2.7 billion yuan, and the profit was even less, only 47 million yuan.
This interest rate is too low.
Of course, this is also related to Suguo’s expansion too fast and too many loans.
In February 1999, there were only 100 stores. By the end of 2001, there were 670 stores.
The number of stores increased by 200 a year. Although most of them are franchised convenience stores, this speed is too amazing.
That’s why Suguo’s debt ratio is very high. If it weren’t for the rapid economic development in China and the retail industry’s rush to gain land, they would never have developed so fast.
After reading the five targets, Xu Liang turned to look at Jiang Xiaoyang.
“Which target are you optimistic about?”
“Suguo Supermarket.”
Jiang Xiaoyang did not hesitate.
“Why?”
Xu Liang was a little surprised.
“There are two models of corporate mergers and acquisitions. One is KKR, which selects those with relatively strong and stable cash flow generation capabilities; corporate management managers have longer working experience in corporate management positions and have rich experience; It has great potential and ability to reduce costs and increase operating profits; it has a low corporate debt ratio.
The other is Blackstone and 3G Capital, which specialize in investing in specific industries and rely on their rich industry management experience. , reversed the decline of the company, and through continuous mergers and acquisitions and expansion, became the industry leader and gained the advantage of scale
Of the two modes, I prefer the second. ”
Xu Liang nodded. Both models have their own advantages and disadvantages.
KKR’s model is basically a one-shot deal, and because there is no need to participate in corporate management, the company’s There are not too many people, and administrative costs are very low
KKR manages an asset pool of tens of billions of dollars, and the entire company only has 6 general partners and 11 professional investment partners, plus one. Just a staff team of 47 people.
Then there are the models of 3G and Blackstone, investing in one or several industries.
After you understand the operating rules of an industry and turn it into a profit, you can apply these experiences to the next M&A company.
Then copy, copy, and copy again until you become the top few in the industry, preferably the first. The valuation and profits earned by a giant company after its listing far exceed that of dozens of small and medium-sized enterprises.
Jiang Xiaoyang continued: "Compared with several other targets, the retail industry is broad enough and influential enough. And now the domestic retail industry is basically in a state of fragmentation, and there is no one like Wal-Mart. , Costco, a super retail giant across the country, this is our opportunity.”
Xu Liang’s eyes showed deep thought, Jiang Xiaoyang’s words were correct.
Although there are strong players like Lianhua and Hualian in the domestic retail industry, both of them have a large number of department stores and retail stores and can only be regarded as regional giants.
“…And, isn’t your No. 1 store doing B2C? If you can acquire Suguo, you don’t have to invest in building a logistics center.
With Suguo’s logistics and distribution The system will greatly promote the development of No. 1 Store, and the economies of scope and scale will be greatly improved.”
Hearing this, Xu Liang, who originally didn’t care much about Suguo, also Somewhat excited.
Having knowledge from his previous life, he knew that if he wanted to do a good job in B2C business, he must work hard on logistics and distribution.
JD.com has JD.com Express, and Alibaba has Rookie Wraps.
And the integration of online and offline will also be a trend in the future.
After pondering for a long time, Xu Liang suppressed the impulse in his heart.
“Your idea is good, but if you want to realize the plan you said, you must raise a large amount of funds. It is difficult for the domestic financial market and financing environment to provide us with so much funds.
As for foreign countries, retail is not a lucrative industry.”
There is another reason why he is unwilling to do offline business. Under the impact of online, the offline retail industry will have even thinner profits. In ten years, it will be good to have 7%.
As for ‘No. 1 Store’, his original plan was to only be an online channel for the distribution of peripheral products, but he did not expect that as the company developed, it would expand to B2C.
Even now, he does not regard B2C as Hongmeng’s main business.
But I am thinking about using it as a bargaining chip in exchange for equity in JD.com or Alibaba in the future.
“With your investment ability, you can make more money in the future.” Jiang Xiaoyang said.
Xu Liang shook his head, "I can indeed make a lot of money, and I can also guide Hanhua to make money, but I will not invest money in Hanhua. This is the principle of separating public and private matters. Moreover, Hongmeng has never planned to make e-commerce our main business. Business."
Jiang Xiaoyang frowned and said: "You plan to sell the No. 1 store?"
Xu Liang nodded, "I have this plan, but it is not the time yet."
The more funds you have in hand, the more you need to be calm; the better the company develops, the more you need to be cautious.
If you expand blindly, you will often end up losing focus and forgetting your original intention. In the end, just like Yahoo, you will get lost in numerous businesses and fall short of success.
Therefore, his plan for Hongmeng has never changed. There are only two core businesses, pan-entertainment and Internet search.
In the future, big data and cloud computing will also be involved, as well as mobile operating systems.
But we will never invest too much in e-commerce.
By the way, it needs to be said that although Xu Liang acquired Sina, the latter is not Hongmeng’s core business.
Of course, whether No. 1 Store is really sold depends on the situation.
Independent financing and listing will also be a way in the future.
Jiang Xiaoyang sighed with some disappointment. Without the No. 1 store, the value of Suguo Supermarket would not be as great as previously thought.
But she also respects Xu Liang's decision.
“So, in the future, Hanhua’s M&A route will be the KKR model?”
Xu Liang said with a smile: “KKR also spent tens of billions of dollars to acquire Nabisco, and neither did Blackstone. Stick to the real estate industry, so there is no need to set rules for yourself in advance
It changes with the times and with the situation.
As long as it is a good company, if mergers and acquisitions can make the good company better, we can do it.
But this time, Suguo is indeed not the best choice. "
Jiang Xiaoyang nodded, "So, which of the remaining four targets do you like? "
"Nanfu Battery, as the dominant player in the domestic alkaline battery field, is not listed on the market and has the highest value. Although Changyu is not bad, Changyu's domestic market is still too narrow at this stage. "Xu Liangdao.
It was impossible for him to spend ten years growing a winery, the return would be too low.
Jiang Xiaoyang nodded and said: "How many shares should be given to reward the management?"
"10%, less will have no effect, and more will harm our interests. ... Phoenix in the first half of this year The main task of China Fund is the acquisition and integration of Nanfu Battery.
If there is no other better target in the second half of the year, just acquire Suguo."
Jiang Xiaoyang was stunned, "You are not. Rejected? ”
"What I reject is your plan to invest heavily in the supermarket industry and expand in a big way. I didn't say not to invest in Suguo. This is a good company, and Ma Jialiang is also a strong man. If we can really buy it and run it on the market, we will definitely make a lot of money." Pen.
Of course, if you can raise more funds for Phoenix China Fund, it’s up to you if you want to make mergers and acquisitions in the supermarket industry.”
Jiang Xiaoyang couldn’t help but give him one. Roll your eyes.
“You are responsible for the investment direction of Phoenix China Fund. How come this puts all the blame on me?”
“Eating the emperor’s salary and being loyal to the emperor, who made me do it now? It's your boss." Xu Liang smiled.
(End of this chapter)