Chapter 913 Equity Structure and Future Planning
With the merger of Vivendi Network, Sina’s equity structure has also changed significantly.
The original shareholding of Hongmeng Corporation was reduced from 57.55% to 33.69%.
Vivendi, which originally held 6.34% of the shares, has gone through listing cash out and equity dilution, and its equity in Sina is still 4.21%.
But this time, with the merger of Vivendi Network, the shareholding instantly surpassed Hongmeng, becoming Sina’s largest shareholder with 43.46% of the shares.
However, according to the agreement reached between Vivendi and the six major families, they will sell 25% of Sina's equity based on a valuation of US$22 billion.
In other words, Sina’s shareholding that remained in Vivendi’s hands was only 18.46%.
Not surprisingly, Hongmeng is still Sina’s largest shareholder.
And Vivendi is the second largest.
As for who is third?
In a short period of time it may be Bernard, of course it may be Mouriez, or both may be the third largest shareholder.
It depends on who is more optimistic about Sina's future.
“I don’t know how they will distribute these 25% of Sina shares? It would be great if there was a fight if the spoils were unevenly divided.” Christina gloated.
"The distribution of interests must have been discussed long ago, and some details are not worth fighting.
It is possible to use Sina's equity to stir up the relationship between the six major families, but it is not too big. " Xu Liang said.
Christina lay lazily on the sofa.
The originally loose white floral T-shirt was stretched tightly by her towering breasts.
After the second pregnancy, estrogen was continuously secreted, and the big babies grew again.
"That's true. However, a thousand-mile dike breaks in an ant nest, and small conflicts continue to accumulate, and big problems will arise sooner or later."
"Okay, I can use idioms now." Xu Liang smiled.
"Of course, I am learning Chinese culture every day, especially the language." Christina smiled.
“Not bad, keep it up.
By the way, how is the negotiation with Universal Music Group?”
“Very smooth. For 4.2 billion euros, Vivendi acquires Universal All the assets of the music group.”
Xu Liangliang was stunned.
Universal Music Group's current annual total revenue is about 6.2 billion euros, with a net profit of 1.367 billion euros.
Although the performance is not very bad.
However, given the declining trend of the global music market, it is certainly impossible to give a high valuation.
Coupled with debt of up to 1.87 billion euros.
Further lowered the quotation.
However, compared to Warner, Sony, and EMI, Universal Music’s valuation is already high.
"According to your request, 20% will be paid first after the contract is signed, and the remaining part will be repaid in five years, and interest will be paid according to the average global loan interest rate." Christina said.
Although Vivendi Group has no shortage of cash, it has greater debts.
Including the debt from the acquisition of Universal Music Group, it has exceeded 21 billion euros, almost catching up with Vivendi Group in 2002.
Originally, the sale of Havas Group and Vivendi Network could divest part of the debt.
But Xu Liang refused.
Huge foreign debt can lower the market value of Vivendi Group and facilitate subsequent privatization.
Only after the privatization is completed, he will manipulate Vivendi to obtain huge returns from the capital market.
After all, he doesn’t want to work for others for free.
“How is the negotiation between Foch and the Bollore Group going?”
Christina is responsible for negotiating with Sina, because both companies have the same boss, so it is relatively easy to negotiate, and she does not pay too much attention to some details.
It ended relatively quickly.
Foch is responsible for negotiating with the Bollore Group, which is naturally different.
Every dollar has to be compared, and the number after the decimal point has to be entangled for a long time.
The situation is more complicated and the talks are slower.
"We are still talking about it, but the valuation of Havas Group has already been discussed in the range of 9 billion to 10 billion euros (excluding debt, including goodwill). The specific amount needs to continue to be discussed." Christina said.
Xu Liang nodded slightly.
The current Havas Group is not the original Havas Group in history.
In the original history, in order to make up for the losses caused by the financial crisis in 2002, Havas sold its European publishing business to the Lagardère Group, helping the other party become the largest publisher in Europe.
Occupies 82% of the French textbook market and 98% of the dictionary market, and also holds 60% of the book distribution industry.
At the same time, the largest educational publisher in the United States, ‘Houghton Mifflin Publishing Company’, was also sold.
This guy became famous for publishing Mustache's "Mein Kampf" and was one of the giants in the American publishing industry.
In addition to paper books, Havas Group is now also a top distributor in the field of game CDs and multimedia CDs, selling nearly 40 million CDs throughout the year.
And he controls more than 80 newspapers and magazines, selling millions of magazines and newspapers every year.
Plus advertising media business.
The group's annual sales exceed US$6.5 billion, making it one of the largest publishing groups in Europe and the fifth largest advertising media service provider in the world.
The development trend is good and the future is bright. Moreover, unlike other books, educational books are more resistant to the Internet.
Although it still cannot change the overall downward trend of the publishing market, the process is relatively long, and it is still in the growth stage, and the capital market is relatively optimistic.
“Dear, Drexi hopes to use Borore Telecom and part of the cash to acquire the Havas Group.” Christina said.
"With a cash flow of 5 billion euros inherited from his father, will he still have no money?"
Vincent Bolore previously wanted to compete with him for Vivendi's equity, but he endured In response to the squeeze of Industrial Bank, Borrowe Group's shares were used to lend 3 billion euros.
Coupled with the cash flow of Borlore Group itself, this liquidity definitely exceeds 5 billion euros.
Before the money could be spent, Vincent was sent to the house by Xu Liang and the 'big boy' of the Bolore family.
“Although Borlore Group still has cash flow, Havas Group, which has stripped off its debt, is too big and they simply don’t have enough.
So I hope to add Bolore Telecom.
After all, their telecommunications business is not too large, and they must invest heavily if they want to develop it.
But after acquiring Havas, the Bolore Group’s cash flow is not exhausted, but there is not much left.
In this case it is better to sell it.
Reducing business scale saves cash flow and invests more resources in industries with more advantages.
For example, Havas, or the Bollore family’s main business, ‘logistics’.
If possible, Dressi also hopes to use the Vivendi equity held by the Borlore Group to offset part of the funds.
After all, Xingye's loan interest is too high, nearly 13% interest, which is simply extortion.
Dresi was arrogant and wanted to pay back the money as soon as possible. "Christina analyzed.
Xu Liang nodded slightly, "Vivendi's equity must be taken over, but the Vivendi equity we hold is enough. Christina Investment Company does not want the Vivendi shares held by Borrore.
Vivendi Group will take these shares and create an option pool to reward outstanding employees of Vivendi Group in the future. "
Christina nodded.
After Vivendi delisted, it held 100% and 70% of the company's equity. Apart from monetary value, the rights it held did not The essential difference.
In this case, it is better to take out this equity and create an internal employee stock-holding foundation, and give away the dividend rights to strengthen Vivendi's internal cohesion.
< br>"As for Bolore Telecom..." Xu Liang looked at the beauty beside him and asked with a smile, "What's your opinion? To do it or not to do it? ”
Christina affirmed: "I want to buy it.
Three reasons.
First, the telecommunications industry has great development prospects. Vivendi Telecom is not only the second largest telecommunications company in France Operator is also the largest telecommunications operator in Africa.
After acquiring Borlore Telecom, Vivendi Group will have more than 18 million customers in France and 24 million users in Africa.
Full coverage of France and the African Democratic Union countries (formerly French African colonies) will be completed
The integration effect brought about by the merger of the two will be multiplied.
Not only will it greatly increase Vivendi Telecom's revenue and profits, but it will also expand Vivendi Telecom's industry influence.
Second, after integration, Vivendi Group’s main businesses are only Canal+ Group, Universal Music Group and Vivendi Telecom.
Telecommunications business is the upstream of the entertainment industry. Strengthening the telecommunications industry can also enhance our voice in the pan-entertainment industry, especially the Internet business.
Thirdly, Vivendi Telecom holds 56% of the equity of its two independent telecommunications companies, Cegtel and 53% of Morocco Telecom.
As the financial reports of Vivendi Group merge with Christina Investment Company, the two companies will inevitably be affected.
So, I plan to take the opportunity to buy the remaining equity of the two companies from Vodafone, Moroccan Investment Fund and other institutions.
All are integrated into ‘Vivendi Telecom’ and used as the only brand of Vivendi Group’s telecom business to enhance the goodwill value of Vivendi Telecom. "
After Xu Liang thought for a while, he smiled.
"The analysis is quite thorough. ”
After receiving the compliment, Christina's pretty face showed a bit of pride.
"If you want to acquire Vivendi Telecom, you can acquire it. However, there is no need to rush to acquire the remaining shares of Cegtel and Morocco Telecom."
"Why?"
" It’s not the time yet.” Xu Liang said calmly.
The control of these two companies is in the hands of Vivendi, and it is not afraid of them running away.
So you can eat it whenever you want.
In this case, there is no need to waste precious cash flow now.
When the European debt crisis breaks out and asset prices across Europe fall, it will be a good opportunity for annexation.
But there is no need to tell Christina about this kind of future thing.
“How much has Vivendi Group’s share price fallen now?” Xu Liang asked.
"After the news came out that we sold Vivendi Networks to Sina, the stock price fell below the 10 billion mark, and the lowest price on the Paris Stock Exchange today was 9.75 billion euros.
Dear, I want to buy it "Come in?"
Xu Liang pondered for a moment and then shook his head.
"Wait until the news of the sale of Havas Group spreads."
"Yeah."
As a pillar business of Vivendi Group, Havas Group was sold, and the debt was left to itself, and sold with zero debt, which will definitely have a huge impact on the share price of Vivendi Group.
(End of this chapter)